AI Express-AIX Connect merger complete; sets new benchmark for future airline consolidation

The Directorate General of Civil Aviation (DGCA) has granted the requisite regulatory approval for the merger.

New Delhi: Marking a significant consolidation in the Indian airline space, Air India Group on Tuesday completed the merger of low-cost carrier AIX Connect with Air India Express and the merged entity's fleet is expected to cross 100 planes by the end of March next year.

The merger -- completed in less than a year, will see the entity operating under the name 'Air India Express' and airline code 'IX' -- and Air India chief Campbell Wilson described the completion of the integration as an "important milestone" in the transformation journey.

Aviation regulator DGCA on Tuesday said the merger of AIX Connect with Air India Express sets a new benchmark for future airline consolidation in the country.

Effective October 1, 2024, all aircraft of AIX Connect have been transferred seamlessly onto the Air Operator Certificate (AOC) of AIX, ensuring that airline operations of the combined entity continue without disruption to ensure a safe and smooth passenger experience," DGCA said in a release.

Both airlines are part of Tata Group, which will also be merging Vistara with Air India next month.

The merged entity's fleet, which currently stands at 88 planes, is expected to cross 100 aircraft by the end of this financial year.

"The number of routes AIX operates has risen from 74 to 171, and passenger carriage has increased by over 400 per cent since the take over of Air India by Tata group in early 2022," Air India Group said in a release.

The merger involved the harmonisation of operational manuals across the two low-cost carriers and, the transfer of aircraft, besides operational, safety and maintenance approvals.

Wilson said the integration of AIX Connect with Air India Express is an important milestone in Air India's Vihaan.ai transformation journey and that the merged entity will cater to the growing demand for air travel around India and in the region.

He is the Managing Director and Chief Executive Officer of Air India and the Chairman of Air India Express.

"About a year ago, we started the integration of AIX Connect and Air India Express, bringing the two organisations together behind a common brand.

"Alongside, we worked on the complex integration exercise culminating today in the operational and legal merger of the two organisations," Air India Express Managing Director Aloke Singh said.

The Directorate General of Civil Aviation (DGCA) said it will closely monitor post-merger operations to ensure ongoing compliance with all regulatory conditions, safeguarding consumer interests and ensuring the continued safety of air operations in India.

"Our rigorous review ensures that this merger serves the public interest by fostering safe air operations while enhancing the overall travel experience for consumers.

"The insights gained from this experience will prove valuable for the upcoming merger of Air India and Vistara, which is currently in progress," DGCA chief Vikram Dev Dutt said.

India is one of the world's fastest-growing civil aviation markets.