Air India Express has merged with AIX Connect (formerly AirAsia India), a move aimed at scaling operations and boosting long-term profitability. Despite AIX Connect’s history of losses, Air India Express Managing Director Aloke Singh is optimistic, stating that the integration will accelerate the airline’s path to profitability. According to Singh, the merger will allow for significant cost optimization, better asset utilization, and the creation of a robust network, ultimately supporting sustainable growth for the combined entity.
The merger comes at a time when Air India Express, part of the Tata Group’s aviation portfolio, faced its own financial challenges. The airline reported a net loss of Rs 163 crore in FY’24, a stark contrast to the Rs 117 crore profit in FY’23. This loss occurred despite a notable 33% increase in revenue, which rose to Rs 7,600 crore, thanks to higher passenger volumes and improved operational capacity. However, expenses also surged by 38.3%, reaching Rs 7,763 crore. In contrast, AIX Connect, which merged with Air India Express in October 2024, showed signs of improvement. The airline reduced its net loss significantly to Rs 1,149 crore for FY’24, down from a massive Rs 2,750 crore loss in FY’23. This positive shift reflects the early benefits of the integration, as operational efficiencies begin to take hold.
Singh acknowledged that the expansion phase following the merger might initially put pressure on profitability, as new routes often require promotions, incentives, and low-fare offers to attract customers. However, he remains focused on fostering measured, sustainable growth, ensuring that the combined airline can weather any initial challenges while positioning itself for future success. The merger is poised to create a unified low-cost carrier under the Air India umbrella, making the airline more competitive in the burgeoning Indian aviation market. By capitalizing on the strengths of both Air India Express and AIX Connect, the merged entity hopes to provide a seamless experience for passengers while driving efficiency and profitability in the long run. This strategic move highlights Tata Group’s commitment to strengthening its aviation portfolio, making Air India Express a formidable player in the low-cost carrier sector, ready to serve an expanding market with improved services and enhanced operational efficiency.
