Summary
- Air India Express is reportedly set to sign a codeshare agreement with Air India, allowing both airlines to focus on specific routes and avoid competition.
- The merger process between Air India Express and AirAsia India is progressing quickly and is expected to be finalized later this year.
- Air India Express will undergo a rebranding, incorporating a font similar to Air India’s new brand, with the possibility of debuting the new look on an Airbus A320neo.
In a few months from now, there will be two airlines under the Tata Group – a full-service carrier Air India and a low-cost airline Air India Express. And the management is already ensuring that the two companies do not eat into each other’s market by defining certain route territories.
Codeshare
Air India Express could reportedly soon sign a codeshare agreement with Air India, with both withdrawing from certain routes to allow each other to grow. Mint reports that Air India Express will pull out of routes that require business-class capacity and focus on non-trunk routes.
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Once both airlines are consolidated following their respective mergers, the plan is to have passengers connect from smaller cities that Air India Express will operate out of and feed long-haul international traffic to Air India’s wider network. Mint quotes an executive as saying,
“As part of the strategy, Air India Express has pulled out of Delhi-Mumbai, and Air India has pulled out of markets like Surat. Starting next month, Air India Express will start new flights to Goa, Guwahati and Lucknow. The flight frequencies will increase as the airline starts to induct new aircraft starting October this year.”
Merger process to be completed soon
Things are progressing at impressive speeds for Air India Express, which will merge its business with AirAsia India. The airline will receive more than 20 Boeing 737 MAX aircraft starting later this year, its first significant fleet development in years. Its fleet will also welcome all the Airbus A320neo aircraft of AirAsia India, which will help strengthen its position both domestically and abroad.
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AirAsia India, which is now a subsidiary of Air India, has also been allowed to operate its flights under the brand name Air India Express. This marked a significant fast-tracking of the integration efforts, including harmonizing customer touchpoints, products, and services across both airlines.
Air India Express will also shift its base from Kochi and Mumbai to the new office in Gurugram, in the Delhi NCR region. The Tatas have rented office space in Gurugram, which will be home to the airlines operating under its umbrella.
New branding
Air India recently released its new brand, color scheme, and livery to mixed reactions. The Tatas are now reportedly also working on a new look for Air India Express, with sources revealing that its new livery will incorporate a font similar to Air India’s new brand.
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The airline is still deciding which aircraft will debut the livery. Sources have said that the new 737 MAX aircraft will be delivered in a few months, and the rebranding may launch on an Airbus A320neo. The A320neos are currently being transferred to Air India Express, explaining the likelihood that the carrier may choose the aircraft type to debut its new look.
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Source: Mint
