- SUMMARY
- Air India Express CEO reveals that more synergies will be unlocked within this year.
- Parallel to Vihaan.AI, Air India Express will also focus on cost management.
- The airline is eyeing an expansion on both domestic and international fronts.
At the CAPA India Aviation Summit, Air India Express CEO Aloke Singh shared some insights about the airline’s future. He said that in the next 12 months, the airline will be focusing on cost management and financial turnaround.
In the transformation plan of Air India named Vihaan.AI, the next phase is the climb phase. In this part, the group will be focusing on financial turnaround and will try to maximize the revenue.
Air India Express: New Synergies Will be Unlocked
Both Air India Express and AIX Connect are currently undergoing a merger. AIX Connect is a temporary name given to AirAsia India, as the brand license of AirAsia expired in November 2023. During the 2024-25 term, new synergies will be unlocked between Air India and Air India Express.
The long-haul network of Air India and the short-haul network of both AI and AI Express will complement each other. Cross-feeding between both carriers will start. Even now, both airlines are codeshare partners, but after the merger conclusion, this will happen on an even larger scale.
This year, the major focus will be on cost management and transformation plans. Specifically, the airline will be focusing on the finances. With a rapidly growing fleet and network, it is set to witness an increase in revenue.
When asked about how the bilateral agreements affect the Indian carriers, he said that the airline does not see any growth impact because of bilateral rights for the next half-decade. Campbell Wilson, CEO of mainline carrier Air India said that for bilateral agreements, there should be a pragmatic approach.
Merger Updates
TATA Group is currently undergoing two major mergers:
- AirAsia India (AIX Connect) & Air India Express
- Air India and Vistara
The merger of Air India and Vistara is awaiting approval from National Company Law Tribunal (NCLT) and Department for Promotion of Industry and Internal Trade (DPIIT). NCLT has already reserved the order, written copies of which will be received by both airlines within a month. Following the NCLT approval, the airlines can move staff and aircraft between each other.
The LCC merger is almost completed as well. It is also awaiting approval from the NCLT. After the approval, the fleet transfer will start from the AOC of AIX Connect to Air India Express. Already, four Airbus A320neos of Air India Express have been shifted to Air India Express. Two of these have received the new livery.
Air India Express is looking to enhance its network on both domestic and international fronts. On the domestic front, it has started bookings for Ghaziabad Airport, becoming the first airline to operate from two airports in Delhi. On the international front, it is looking to start services to Dhaka and Chattogram. It has appointed a General Sales Agent in Bangladesh.
Conclusion
In the next year, Air India Express will be focusing on cost management. With a growing fleet and network, the airline will witness an increase in revenue. As both the mergers within the TATA Group progress, more and more synergies will be unlocked within the airlines as cross-feeding between Air India’s long-haul flights and short-haul flights of Air India Express will start.
What do you think about the comments made by Air India Express CEO Aloke Singh? Discuss in the comment section.
With Inputs From Deccan Herald
Featured Image Credits: Air India Express via Facebook
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