AirAsia India gets green to fly under AI Express brand
With the official approval from India’s Directorate General of Civil Aviation (DGCA), AirAsia India has taken a significant step towards the integration of its operations with Air India Express. The regulatory clearance now allows both Air India Express and AIX Connect flights to be marketed, distributed, and operated under a common brand name, “Air India Express.” This move is seen as a crucial milestone towards the proposed legal merger of the two airlines.
AirAsia India, a joint venture between Tata Sons and AirAsia Berhad, revealed that the decision to consolidate under the Air India Express brand aims to harmonize customer touchpoints, products, and services for both airlines. By streamlining and unifying their offerings, the integration is expected to enhance the overall travel experience for passengers and create valuable synergies between the two carriers.
The rebranding and integration process will involve aligning various aspects of the airlines, including ticketing systems, onboard services, and overall brand identity. Customers can expect a more seamless experience while booking, boarding, and flying, with a cohesive brand image reflecting the combined strengths of AirAsia India and Air India Express.
The airlines anticipate improved operational efficiency and cost-effectiveness by leveraging shared resources and expertise. The integration is expected to optimize fleet utilization, maintenance, and ground services, leading to potential cost savings and streamlined processes.
One of the key benefits of the integration is the potential for expanded route networks and increased flight frequencies. With a broader network coverage, Air India Express can tap into new markets and offer passengers more travel options. This growth strategy could be advantageous in the highly competitive Indian aviation market.
Furthermore, the consolidation will also allow the airlines to standardize product and service offerings. Passengers can look forward to consistent service quality, in-flight amenities, and customer support across all flights under the Air India Express banner. This alignment of standards aims to enhance customer satisfaction and loyalty, encouraging repeat business.
The move towards integration is not only about operational efficiency and cost optimization; it also represents a strategic response to the evolving dynamics of the aviation industry. The past few years have witnessed significant shifts in customer preferences, market demands, and global travel patterns. By joining forces, AirAsia India and Air India Express seek to position themselves as stronger contenders in the ever-changing aviation landscape.
While the integration process is expected to bring numerous benefits, it will also present unique challenges. Merging two airlines requires meticulous planning, coordination, and effective execution to ensure a smooth transition without compromising safety, service, or customer experience.
The success of the integration will depend on how well the two airlines align their operations, culture, and organizational structure. Employee integration, training, and communication will be crucial aspects to address during the process to foster a cohesive and motivated workforce.
To expedite the integration process and signal the forthcoming change, AirAsia India is taking swift action by sending 3-4 aircraft each month for updating their livery from AirAsia India to Air India Express. The livery change involves modifying the external appearance and branding of the plane to reflect the new common brand name, “Air India Express.”
The airline aims to complete the full fleet transition for livery by November or December, indicating the urgency and commitment to presenting a unified identity to the public. As each aircraft undergoes the livery update, passengers and aviation enthusiasts will begin to notice the visible transformation of the airline’s planes, aligning them with the new branding.
By swiftly updating the aircraft livery, AirAsia India seeks to create a cohesive and consistent brand image, reinforcing the integration process and the airline’s commitment to harmonizing its operations with Air India Express. This external representation of the new brand will be an essential aspect of communicating the changes to customers and the wider aviation industry.
Beyond the visual changes, the completion of the livery transition will be a crucial milestone in the integration efforts, demonstrating the airline’s progress in unifying various aspects of its operations. Passengers can expect to see a uniform branding across all aircraft, ticketing platforms, and airport facilities associated with the new Air India Express brand.
However, it’s important to acknowledge that such a comprehensive fleet livery update entails a meticulous and coordinated effort. The airline must ensure that the transition does not disrupt its day-to-day operations and that safety standards are maintained throughout the process.
Additionally, training and communication with the airline’s employees will be essential to ensure a smooth transition. Staff members must be well-informed about the changes and the new brand identity to deliver a consistent and positive customer experience.AirAsia India has taken further steps to accelerate its integration with Air India Express.
Among these efforts, the airline has begun changing its International Air Transport Association (IATA) flight code from ‘I5’ to ‘IX,’ aligning it with the code used by Air India Express. This transition is expected to be completed by January, signalling the formal unification of the two airlines.
In a significant move earlier in March, the Tata Group, the parent company of AirAsia India, successfully integrated the reservation system and customer interface of both AirAsia India and Air India Express. This milestone brought the two airlines even closer to becoming a single low-cost platform. As part of this integration, the airlines migrated to a unified reservation system and website, simplifying the booking process for passengers and presenting a cohesive brand image.
In addition to the system integration, the airlines also adopted common social media channels and customer support platforms. This strategic decision aimed to provide passengers with consistent and efficient support services across both airlines, further streamlining the customer experience.
The ongoing efforts to realign the flight code and reservation systems demonstrate the airlines’ commitment to creating a seamless and unified travel experience for their passengers. By leveraging the strengths of both AirAsia India and Air India Express, the Tata Group envisions a stronger market position and improved operational efficiency.
The successful integration of the reservation systems, customer interfaces, and other operational aspects is likely to yield valuable synergies, translating into enhanced services and cost optimization. The closer collaboration between the two airlines also opens up opportunities for expanded route networks and increased flight frequencies, catering to the evolving demands of the Indian aviation market.
As the integration progresses, the airlines will continue focusing on employee training, communication, and cultural alignment to foster a cohesive and motivated workforce. The support and cooperation of all stakeholders will be critical in ensuring a smooth and successful transition to a unified brand.
With each strategic step, AirAsia India and Air India Express are moving towards their vision of establishing a single, dynamic, and customer-centric low-cost airline platform. As the completion of the flight code change and other integration initiatives nears, passengers and industry observers eagerly anticipate the unveiling of the fully unified Air India Express brand, representing a new chapter in India’s aviation landscape.
Recently, Air India Express made strides towards further integration with AirAsia by introducing AirAsia’s renowned ‘Gourmair’ in-flight dining menu. This enhanced dining experience offers passengers a wide range of hot meals, snacks, and desserts, ensuring a more delightful journey on board.
Moreover, in July, both airlines extended the ‘Xpress Ahead’ priority services as an ancillary benefit to their guests. This service includes priority check-in facilities for both boarding and baggage handling, allowing passengers to experience a smoother and more expedited travel process.
As part of their ongoing efforts to unify operations and enhance customer offerings, the airlines will be combining various other ancillary add-on services and common sub-brands. By consolidating these services, Air India Express and AirAsia India aim to create a more seamless and consistent experience for their passengers.
Since its launch in June 2014, AirAsia India has steadily expanded its domestic presence and now operates flights to 19 destinations within India. This growth reflects the airline’s commitment to providing affordable and accessible air travel options to passengers nationwide.
On the other hand, Air India Express has a strong international presence, operating flights to 14 destinations outside India from 20 different Indian cities. The airline’s focus on international routes has made it a popular choice for travellers looking for budget-friendly options for overseas travel.
As both airlines continue to work towards further integration, passengers can look forward to an enhanced travel experience that combines the strengths of AirAsia India’s domestic network and Air India Express’s international reach. By leveraging each other’s resources and expertise, the airlines are poised to create a more comprehensive and competitive aviation platform in the Indian market.
As these developments unfold, customers and industry observers will be keen to witness the benefits of the combined efforts of AirAsia India and Air India Express as they strive to become a leading force in India’s aviation industry.AirAsia India was established as a joint venture involving three entities: Tata Sons, AirAsia, and Telestra Tradeplace, owned by Arun Bhatia. Initially, the equity stakes were distributed as follows: Tata Sons held 41.06%, AirAsia owned 49%, and Telestra Tradeplace held 9.94%.
Over time, the Tata Group gradually increased its ownership in AirAsia India. By 2019, Tata Sons had raised its stake in the airline to 51%, making it the majority shareholder.
In December 2020, AirAsia Bhd, the parent company of AirAsia, announced its decision to divest a significant portion of its ownership in AirAsia India. As part of this move, AirAsia Bhd agreed to sell a 32.67% stake in AirAsia India to Tata Sons, with a provision to sell the remaining 16.33% stake in the future potentially.
By the end of December 2020, Tata Sons successfully acquired the 32.67% stake from AirAsia Bhd, which added to its existing 51% ownership. Consequently, Tata Sons’ stake in AirAsia India increased to 83.67%, solidifying its control and position as the majority shareholder in the airline.
This strategic move allowed Tata Sons to strengthen its influence over AirAsia India and exercise more significant decision-making power within the company. As a result, AirAsia India is now predominantly under the ownership and management of the Tata Group, positioning it for further growth and integration with other Tata-owned aviation ventures.As of June, AirAsia India holds the position of the fourth-largest domestic airline in India, commanding an 8% market share, according to data from the aviation regulator.
The airline’s steady growth and increased market presence have contributed to its position among the key players in the Indian aviation industry.
With the integration of Air India Express into the Tata Group’s portfolio, there are strategic advantages in presenting a unified and uniform low-cost brand. This move allows the Tata Group to position itself more competitively against IndiGo, India’s largest airline and a prominent low-cost carrier. By consolidating their efforts and resources, the integrated Air India Express and AirAsia India can potentially gain operational efficiencies, reduce costs, and improve revenue performance.
An early transition towards integration is expected to yield significant benefits, particularly during the peak demand quarter from October to December. This period is known for increased travel activity due to festivals, holidays, and year-end vacations. By leveraging the strengths of both airlines under a single brand, the Tata Group can cater more effectively to the surge in travel demand and potentially capture a larger share of the market.
As part of the Tata Group’s strategy for its airlines, Air India will focus on metro-to-metro markets and high-connectivity routes, operating as a full-service carrier. On the other hand, the consolidated Air India Express will concentrate on leisure-oriented or price-sensitive markets, reinforcing its position as a reliable and affordable choice for both domestic and international leisure travellers.
This strategic positioning allows the Tata Group to tap into different segments of the aviation market and provide tailored services to meet diverse passenger needs. By catering to both business and leisure travellers, the group aims to maximize its market coverage and revenue potential.
As part of its strategic expansion in the aviation sector, the Tata Group is also pursuing the merger of Vistara with Air India. Vistara, a joint venture between Tata Sons and Singapore Airlines, operates as a full-service airline and has steadily gained prominence in the Indian market.
The proposed merger with Air India aims to consolidate the Tata Group’s position in the aviation industry further. The combined entity will create a powerful and comprehensive full-service airline, allowing the Tata Group to compete more effectively in the domestic and international markets.
However, it is important to note that the merger is subject to regulatory approvals, and the Tata Group is awaiting the necessary clearances to proceed with the integration process. Once the approvals are obtained, the integration is expected to begin before March 2024.
The timeline set for starting the integration process indicates the Tata Group’s commitment to realizing its strategic vision for the airline sector within a defined timeframe. By combining the strengths of Vistara and Air India, the Tata Group aims to capitalize on operational synergies, optimize resources, and create a robust and competitive airline that can offer a wide range of services to passengers.
The proposed merger will be a significant development in India’s aviation landscape, and it is likely to attract attention from industry stakeholders and aviation enthusiasts alike. As the integration process unfolds, more details about the combined entity’s brand identity, route network, and services are expected to emerge.
For now, the Tata Group’s ambitious plans to consolidate its airline ventures—AirAsia India, Air India Express, and Vistara—signify a strategic approach to position itself as a major player in India’s aviation market. The success of these integration efforts will depend on effective execution, regulatory approvals, and adaptability to the dynamic aviation industry’s challenges and opportunities.
