The airline is now headed by Air India Express CEO Aloke Singh.
AIX Connect, formerly known as AirAsia India, has several changes lined up this year. The domestic low-cost carrier is now fully owned by the Tata Group as Air India’s subsidiary and will see its business merged with Air India Express by the end of this year. From team integration to increased share capital, here’s a glimpse of what 2023 has in store for the airline.
Game-changing product
On January 1st, Aloke Singh, the CEO of Air India Express, took charge of AIX Connect, which until not too long ago was known as AirAsia India.
In a message to his employees, he said that while it is sad to see AirAsia go, there is plenty to look forward to in terms of bringing together the strengths of the two airlines (AIX Connect and Air India Express) and working towards creating a robust new organization.
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Singh added,
“AI Express provides a platform for an international footprint, ready to scale up to a formidable pan-Asia network. A meaningful domestic presence with a new fleet is on the anvil. Cross-feeds between the international long-haul, international short-haul, and domestic networks will give us an unmatched competitive advantage.”
“The path ahead will be challenging. But we have a monumental opportunity to build something we can be proud of. And what we create will be game-changing for the industry as well.”
Integration
Merging the businesses of both airlines fully will be a year-long process, which Singh will oversee. He gave an update that 150 colleagues from both organizations are already working together on dozens of essential workstreams for the eventual merger.
With two more airlines under the Tata Group (Air India and Vistara) also headed for a merger, the conglomerate is keen on streamlining the process of its airline business.
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The Times of India reports that following their respective mergers, both Air India and Air India Express will share a common website. With the integration of schedules, passengers will have the option to travel on a single ticket on both Air India and AI Express flights based on their requirements and preferences.
Increased share capital
AIX Connect, meanwhile, will also see an increase in flight operations, with the Tata Group raising its share capital. According to a report by Business Standard, the Indian conglomerate will increase the airline’s authorized share capital from ₹52 billion ($629 million) to ₹100 billion ($1.2 billion) and also increase its borrowing limit from ₹28 billion ($338 million) to ₹45 billion ($544 million).
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This will help the Tatas to issue more shares and provide more capital to the business. This was reportedly done just a day after Air India got complete control of AirAsia India after buying it from the Malaysia-based AirAsia Group on November 2nd.
What are your expectations from a consolidated Air India Express following the merger? Please let us know in the comment section below.
Source: The Times of India, Business Standard