The Tata Group today announced the merger of Air Asia and Air India Express.
The new entity, which will cater to the domestic sector, will also look to service short-haul international routes of the Gulf, Indian sub-continent and South Asia, it announced at an event in Mumbai today.
The company will get a narrow body aircraft every six days till the end of December 2024. It will get 190 narrow body aircraft in total over the next 5-7 years.
(Source: BQ Prime)
The combined entity currently has 57 aircraft, including two aircraft from the narrow body aircraft order.
Currently, Air Asia has 7-8% and Air India Express has 11% of short-haul International flights.
The combined entity looks to double the market share in the next five years, said Aloke Singh, managing director of Air India Express. The airline will have 175 aircraft at its peak, he said.
The airline will operate under a single brand but will fly on two codes till the merger is complete. Thereafter, it will drop the Airline Operating Code.
The group consolidation is expected to be completed by March 2024. Subsequently, the group will run a full-service carrier under Air India and Air India Express for domestic and short-haul international flights.
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