Air India Express to add 65 planes, Air India 35 in next three years

Presently, Air India Express operates a fleet of approximately 90 aircraft, whereas full-service airline Air India has around 210 planes

Air India Express, the budget-carrier arm of Air India, plans to add 65 aircraft to its fleet over the next three years, as it embarks on a significant expansion drive.

 

Its parent airline is set to induct 35 planes during the same period.

 

The quicker fleet expansion of Air India Express is on account of quicker deliveries of B737 Max aircraft, configured exclusively with economy-class seats by American manufacturer Boeing. 

 

At present, Air India Express operates a fleet of approximately 90 aircraft, while Air India has around 210 planes.

 

Speaking to reporters in Kolkata Thursday evening, Air India Express Managing Director Aloke Singh said, “We are looking at a fleet of about 175 aircraft for Air India Express in about three years from now.” 

 

This means that Air India Express plans to add about 85 aircraft to its fleet over the next three years.

 

Industry sources clarified that approximately 20 older planes are in the process of being transferred from Air India to its low-cost airline subsidiary, while around 65 will be brand-new deliveries, primarily from Boeing.

 

Last week, Air India CEO and Managing Director Campbell Wilson told reporters in New Delhi that the Air India Group (comprising Air India and Air India Express) plans to grow its fleet by about 100 aircraft—from approximately 300 to 400—over the next three years.

 

In February 2023, the Air India Group placed orders for 470 aircraft—220 from Boeing and 250 from European manufacturer Airbus—in the world’s second-largest single-tranche aircraft purchase. Of these, 400 are narrowbody planes.

 

According to sources, Airbus is expected to begin delivering its narrowbody aircraft to the Air India Group later than Boeing.

 

The fleet is fungible, Singh said, adding that it can move across the two entities – Air India and Air India Express. 

 

He mentioned that Air India Express has about 90 planes right now and this fleet size will increase to about 100-plus by the end of this financial year. As far as deployment of capacity is concerned, 50 per cent would be towards short-haul international while the balance was focused on domestic routes.

 

On October 1, the Air India Group completed the operational integration and legal merger of Air India Express Ltd and AIX Connect Pvt Ltd (erstwhile AirAsia India) into a larger low-cost carrier (LCC). 

 

In the next month, Vistara was merged into Air India, forming a larger full-service parent airline. With the merger behind it, more diversification of route network and customer segments is on the cards.

 

As part of the bigger transformation of the Air India Group, routes are getting rationalised between the two airlines. Singh explained that Air India’s business model was better suited for long-haul and more premium-end of the market, which means metro-to-metro routes with a higher concentration of business.

 

“Our focus is going to be primarily on metro to Tier-II and -III cities. Short-haul international is going to be Tier-II, Tier-III cities connecting directly with overseas airports,” the managing director of Air India Express said.

 

 “We want to be a part of the India growth story, which is playing out more in the Tier 2, Tier 3 cities – a very different aspirational India,” he added.

 

 In short-haul international, the priority was South Asia, connecting Bangladesh, Nepal, and Sri Lanka. “Beyond that will be South East Asia. Bangkok, we have announced, Phuket, we will get into. And then possibly in the future, Vietnam.”

 

 Two years from now, the LCC may also look at CIS countries (such as Kazakhstan, Uzbekistan). Air India Express already has a significant presence in the Gulf and West Asia.

 

The ongoing uncertainty in Bangladesh, however, has prompted Air India Express to put its direct flights between Kolkata and Dhaka “on hold”.

 

“We had announced it. There was a launch date also, but then we felt that it was not the right time to start. We would have struggled… a new flight needs a lot of marketing push. So we decided to defer it,” Singh explained.

 

The flight service to Kathmandu, however, is expected to begin in the summer schedule.

 

The aviation sector has become a virtual duopoly with IndiGo and Tata Sons-run Air India Group holding more than 90 per cent share in the domestic passenger market.

 

On whether pricing war was the key to gaining market share, Singh added: “From our perspective, prices are competitive. With the consolidation of the market, we feel there will be more rational pricing, which is good for the industry.”   

FLEET COUNTER 

- A-I Express operates about 90 planes. Over the next 3 years, it is set to receive 65 new planes and absorb 20 older planes from its parent airline, Air India. This will bring its total fleet size to approximately 175 planes

 

- Air India has a fleet of around 210 planes. Over the next 3 years, it plans to take delivery of 35 new planes while transferring 20 older planes to A-I Express. This will increase its fleet size to about 225 planes