Image Source : FILE Air India Express
Tata Group’s budget airline, Air India Express, has successfully completed its merger with AIX Connect (formerly AirAsia India), marking a significant strategic move to establish a unified budget airline under the Air India umbrella. This merger is part of the group’s efforts to create a robust and scalable network that supports long-term growth while aiming for profitability without straining the airline’s financial position.
Alok Singh, Managing Director of Air India Express, addressed concerns surrounding the merger, particularly regarding the financial challenges faced by AIX Connect, which had been operating at a loss. Singh confirmed that the merger process was completed in October and emphasized that the integration would enable the airline to achieve significant scale, optimize costs, and make better use of its assets, ultimately paving the way for increased profitability.
While Air India Express faced a net loss of Rs 163 crore for the fiscal year 2023-24, a sharp contrast to the Rs 117 crore profit reported in the previous fiscal year, the airline saw a substantial increase in revenue. Despite the rise in revenue by 33%, reaching Rs 7,600 crores, operational expenses surged by 38.3%, totalling Rs 7,763 crore, which contributed to the loss. Singh remains optimistic, highlighting the long-term benefits of this merger, which will strengthen the airline’s position in the highly competitive aviation market.
AIX Connect, following its integration into Air India Express, significantly reduced its losses for the fiscal year 2023-24. The airline’s net loss decreased to Rs 1,149 crore, a considerable improvement from the Rs 2,750 crore loss reported in the previous year.
The completion of this merger is expected to solidify Air India Express’s position as a major player in the budget airline sector, with a focus on building a strong and sustainable network capable of handling future growth.
