Construction Industry News
In a strategic move for the coming year, Tata Group is moving towards consolidating its four airlines. Air India Express has filed the 'second motion' for a final hearing in the National Company Law Tribunal (NCLT) to incorporate AIX Connect (previously known as AirAsia India) into its operations. Pending approval in March, this merger will result in both airlines operating under a single Air Operator Certificate or license.
The large-scale merger between Vistara and Air India depends on the latter reaching a certain operational level, as Air India MD and CEO Campbell Wilson told TOI in September. Although the exact timeline for this merger is yet to be announced, insiders suggest that it will also be completed in 2024.
Air India Express is set to focus on less saturated markets and Tier II and III cities, while Air India will give priority to routes with a significant share of premium traffic, in addition to medium and ultra-long haul routes. The former will play a vital role in providing crucial connectivity to Air India's hubs in Delhi and Mumbai, and will cater to the growing number of wide-body flights across the world.
Outlining the expansion plans, Air India Express CEO Aloke Singh said: “With a current fleet of 62 aircraft (combining both low-cost airlines), we plan to introduce 50 new Boeing 737 Max aircraft in the next twelve months. With some older aircraft, Air India Express is expected to have a fleet of around 98 aircraft by December." Tata Group's colossal order for 470 aircraft last February, including 190 B737 Max for its low-cost airline, underlines its commitment to expand its presence in the aviation sector to strengthen.
Highlighting the consolidation strategy, Singh explained: “While we will introduce new domestic and international routes, our initial focus is on strengthening our existing network. For example, when we start flights to Surat, we start from Delhi. We then quickly introduced direct flights to Surat. flights connecting Surat with Bengaluru, Kolkata, Sharjah and Dubai. This approach reflects our expansion plans for Ayodhya, where we started with flights from Delhi, followed by direct routes to Bengaluru and Kolkata.
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