AirAsia India given nod to operate under Air India express brand

AirAsia India has received approval from the civil aviation regulator to operate its flights under the Air India Express brand, marking a big step in the ongoing integration process of the two airlines. This move will enable them to streamline route planning and present a unified front when advertising and selling tickets.

The integration process is part of the Tata Group's efforts to merge AirAsia India and Air India Express into a single low-cost airline, while also combining Air India and Vistara to form a full-service carrier.

In a statement, AirAsia India expressed its enthusiasm about the regulatory approval to operate flights under the 'Air India Express' branding. The development signifies the fast-tracking of integration efforts, with a focus on harmonizing customer touchpoints, products, and services across both airlines.

A crucial aspect of the deal is the codeshare agreement between Air India Express and Air India, allowing the former to offer seamless domestic and international connectivity under the same ticket. This is particularly significant as AirAsia India currently operates exclusively on domestic routes, while Air India Express primarily serves destinations in the Middle East from cities in Kerala.

The merger between AirAsia India and Air India Express has already received approvals from various regulators, including the Competition Commission of India, Registrar of Companies, and the National Company Law Tribunal. The final step before the airlines can operate under the same code is the merging of their operating manuals, which is expected to be completed by October.

Internally, AirAsia India has already taken significant steps towards integration, including appointing a single CEO and adopting a common reservations system, website, social media platforms, and customer support channels. The airlines have also finalized key executive appointments, pending approval from the Directorate General of Civil Aviation.

The two airlines currently operate separate fleets, with AirAsia India using Airbus A320 aircraft, and Air India Express relying on Boeing 737 planes. The merger of their manuals by October will facilitate a smoother transition.

With the addition of 50 new Boeing 737 Max aircraft to its existing fleet of 54, AirAsia India aims to become the second-largest low-cost airline in the country by the end of FY24. The airline has ambitious plans to expand its reach to 30 international destinations, including Cambodia, China, Indonesia, the Philippines, Turkey, and Vietnam.

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