Air India Express: Strategic fleet expansion amid market growth

Air India Express has announced plans to expand its fleet significantly over the next three years by adding approximately 85 aircraft. This includes 65 new planes and 20 used aircraft transferred from Air India. The expansion follows the carrier’s merger with AIX Connect, signalling a strategic push toward growth and profitability.

A strategic push toward growth and profitability

Air India Express currently operates 91 aircraft, including 25 A320-200s, 5 A320-200Ns, 35 B737-8s, and 26 B737-800s. Having also completed its merger with AIX Connect, formerly known as AirAsia India, the carrier aims to strengthen its presence in both domestic and international markets. A major focus will be connecting India’s Tier 2 and Tier 3 cities to major hubs, accessing one of the country’s fastest-growing aviation segments. These routes account for two-thirds of the market and are essential for long-term network sustainability.

Aloke Singh, CEO of Air India Express, said:

“We are planning to have a fleet of about 175 aircraft for Air India Express in about three years from now. Aside from the aircraft transferring over from Air India, most of the growth will come from new B737 MAX types. Air India Express has fifty B737-10s and 105 B737-8s on order.”

Air India Express: Path to Profitability

While the airline reported a loss of INR 1.17 billion (USD 13.8 million) for the fiscal year ending March 31, 2024, signs of future profitability are emerging. Specifically, Revenue increased by 33% year-on-year to INR 76 billion (USD 895 million). These numbers are driven by higher passenger volumes and enhanced operational capacity. However, a parallel 38.3% rise in expenses, totalling INR 77.63 billion (USD 914 million), erased many of these gains.

Therefore, Singh considered that the merger with AIX Connect would accelerate Air India Express’s return to profitability through operational gains.

He stated:

“The integration of AIX Connect will expedite our path to profitability by achieving significant scale, optimizing costs, and better utilizing our assets. The objective is to build a robust, scalable network that supports long-term growth.”

 Overall, by focusing on building a strong and sustainable network through the carrier’s merger with AIX Connect, Air India Express is positioning itself as an emerging competitor in India’s aviation market.

What further steps can Air India Express take to ensure steady growth in the upcoming years?  Share your thoughts in the comments below.