Air India Undergoes Significant Transformations and Expansions

Air India is embarking on a series of significant transformations and expansions, marking a new era in its operational and service capabilities. One of the major developments is the completion of the merger between AIX Connect and Air India Express, effective October 1, 2024.

Merger of AIX Connect and Air India Express

The merger, approved by the Directorate General of Civil Aviation (DGCA), integrates AIX Connect into Air India Express, creating a larger low-cost carrier entity. This consolidation is part of Air India's broader transformation plan, known as Vihaan.AI, aimed at enhancing its market presence and operational efficiency.

The merged entity will operate under the unified airline code 'IX' and will manage a combined fleet, significantly expanding its daily flight operations. This move is seen as a pivotal moment in the transformation of the Air India Group, as it also prepares for the integration of Vistara into Air India to form a world-class global airline.

Integration of Vistara into Air India

In another major development, Vistara's operations will be fully integrated into Air India starting from November 12, 2024. This integration follows the approval for Singapore Airlines to acquire a 25.1% stake in Air India, enhancing its presence in the Indian aviation market. Passengers can continue to book Vistara flights until September 3 for travel up to November 11, after which all flights will be managed by Air India.

Enhanced Services and Fleet Upgrades

Air India is also focusing on enhancing its in-flight services and upgrading its fleet. The airline has introduced its new Airbus A350-900 on the Delhi-London Heathrow route, featuring 28 private suites with full-flat beds in business class, 24 seats in premium economy, and 264 economy seats. Additionally, Air India plans to introduce Wi-Fi on board its flights, starting with the A350 aircraft on the Delhi-London Heathrow route.

A $400 million refurbishment program is underway to upgrade 67 older aircraft, including 27 Airbus A320neo planes and 40 Boeing wide-body aircraft. This revamp includes modern cabin layouts, updated seats, and enhanced in-flight features, aimed at attracting premium customers and improving overall passenger experience.

Market Share and Financial Performance

Air India has seen a significant increase in its market share, with domestic market share rising to 27% and international market share to 24% in FY24. The airline's operating revenue grew by 25%, and losses were reduced by over 50% during the same period. This growth is attributed to network expansion, service improvements, and the integration of its cargo units.

With these transformations, Air India is poised to become a more competitive and world-class airline, enhancing its position in the rapidly evolving Indian aviation market.