DGCA approves Air India Express-AIX Connect merger

The Air India Group has finally completed the operational integration and legal merger of Air India Express Ltd and AIX Connect Pvt Ltd, previously known as AirAsia India, into Air India Express. "This move ensures all AIX Connect aircraft are now part of Air India Express's Air Operator Certificate (AOC)," the Tata group carrier says in a statement.

The merger, described as complex, required the integration of aircraft, crew, engineers, and systems, along with backend operations like maintenance and certification. “Merger involved harmonisation of operational manuals across two low-cost carriers, transfer of aircraft, besides operational, safety and maintenance approvals.”

The Directorate General of Civil Aviation (DGCA) approved the merger of AIX Connect on October 1, 2024. The company says the regulator played a key role in managing regulatory and safety aspects during the process, ensuring that no aircraft grounding — a common challenge in such transitions — was required. "The DGCA engaged with stakeholders and established a dedicated team to oversee the merger, further preventing any disruptions to the fleet. The merger was also backed by the Ministry of Civil Aviation (MOCA), the Bureau of Civil Aviation Security (BCAS), and other important stakeholders," it adds.

The DGCA also reviewed key documents, including aircraft leases and insurance agreements, ensuring compliance with aviation standards both domestically and internationally. "Real-time monitoring of the merger’s progress was enabled via a live tracker, with ongoing oversight promised post-merger to safeguard operations."

The merged airline now operates under the ‘Air India Express’ brand name and the unified code IX, completing part of the Air India Group’s restructuring plan under the Vihaan.AI programme, which aims to merge the group’s four airlines into two entities. This merger follows Air India’s broader transformation efforts, which also include the upcoming merger of Vistara into Air India by November 2024, the airline states.

“The integration of AIX Connect with Air India Express is an important milestone in Air India’s Vihaan.ai transformation journey. This merger will be followed by the merger of Vistara into Air India on 12 November. We look forward to working with the guidance of DGCA to conclude it seamlessly,” says Campbell Wilson, managing director & chief executive officer of Air India and chairman, Air India Express.

“India’s rapid evolution into the world's third largest aviation market calls for a robust regulatory regime. Accomplishing this milestone given the complexities involved, is testimony to the efforts put in by teams from both the DGCA and the operator,” says Vikram Dev Dutt, DGCA director general.

Aloke Singh, managing director of Air India Express, says the integration began a year prior and was successfully concluded, bringing both carriers under a single brand.

Currently, Air India Express operates 88 aircraft with plans to exceed 100 by the end of the financial year. The airline has also expanded its routes from 74 to 171 under the Tata Group's ownership since 2022, while a new brand identity, 'Air India Express,' was unveiled in October 2023.