By: Pune Pulse
November 11, 2023
Pune: According to a senior official, the Air India Group, which is currently pursuing ambitious expansion strategies, is projected to receive a new aircraft approximately every six days until the ending of 2024. This group includes Air India, Air India Express, AIX Connect, and Vistara, all of which are owned by Tata. Furthermore, Tata is actively working towards consolidating their airline business.
Air India’s Chief Executive Officer and Managing Director, Campbell Wilson, announced on Wednesday that the Air India Group will receive a new aircraft approximately every six days until the end of 2024. Wilson made this statement during a function held to unveil Air India Express’ new brand identity, emphasizing that it is an exciting day for the group. It is worth noting that the Tata Group assumed control of Air India, which was facing financial losses, in January 2022.
Air India has made a massive investment of USD 70 billion by placing orders for 470 aircraft from Airbus and Boeing earlier this year. The delivery of these new planes is scheduled to commence from November this year. Meanwhile, Air India Express is in the process of merging with AirAsia India, and Vistara is set to merge with Air India. Tata owns 51 percent of Vistara, while Singapore Airlines owns the remaining 49 percent. According to Wilson, the merger of Air India Express and AIX Connect is almost complete.
Air India Express Managing Director Aloke Singh stated that the most challenging aspect of the merger has already been accomplished, as legal procedures typically require 6-9 months. The company is optimistic about completing the merger by March of the following year. Singh also mentioned that Air India Express will operate throughout India, as well as in the Asia region, Southeast Asia, Gulf, and the Middle East.
Furthermore, Singh emphasized the significant advantage of being a part of the Air India Group, which allows for the integration of their network and the provision of cross-feeds. This integration will result in mutual benefits, as their network will contribute to the success of Air India. Regarding their future plans, Singh highlighted their five-year goal of doubling their market share in both domestic India and short-haul international flights.
Singh stated that if viewed as a single entity, the domestic market share is 7-8%, while the international short haul market share is around 11-12%. However, with the implementation of our new feed into commercial operation and scaling up, we are aiming for significant long-term growth, rather than just a short-term boost. On a separate note, Air India Express has recently revealed its new brand identity and aircraft livery, which prominently features the colours orange and turquoise. Additionally, Wilson emphasized that market share is a result of capacity, which in turn is influenced by factors such as aircraft orders and deliveries.