DGCA grants approval for merger of AIX Connect, Air India Express

The Directorate General of Civil Aviation (DGCA) on Tuesday granted the requisite regulatory approval for the merger of AIX Connect ("AIXC"), formerly known as AirAsia, into Air India Express ("AIX").

Effective October 1, 2024, all aircraft of AIXC have been transferred seamlessly onto the Air Operator Certificate (AOC) of AIX, ensuring that airline operations of the combined entity continue without disruption to ensure a safe and smooth passenger experience.

The successful merger of AIX Connect and Air India Express sets a new benchmark for future airline consolidation, highlighting the importance of strategic regulatory oversight in the aviation industry.

Air India Express Connect and Air India Express have demonstrated that this merger will create a more resilient and innovative airline, capable of competing effectively in the global market," said Vikram Dev Dutt, Director General of Civil Aviation.

"Our rigorous review ensures that this merger serves the public interest by fostering safe air operations while enhancing the overall travel experience for consumers.

The insights gained from this experience will prove valuable for the upcoming merger of Air India and Vistara, which is currently in progress," he said.

DGCA informed that the merger of AIX Connect and Air India Express was a complex endeavour involving the integration of aircraft, pilots, cabin crew, engineers, operational control systems, aircraft maintenance, certification procedures, and a wide range of contracts, vendors, and backend systems.

Considering the safety challenges that arise during the merger of two running airline systems, DGCA's role has been pivotal in ensuring that all regulatory and safety requirements have been meticulously complied with and effectively implemented.

Typically, such a transition would require grounding the fleet during the transfer of aircraft from one AOC to another--a process that could inconvenience passengers and impose financial strain on the airlines.

To mitigate these challenges, DGCA proactively engaged with all stakeholders and initiated continuous extensive discussions aimed at creating a procedure that would ensure regulatory compliance.

In order to achieve the dual objectives of maintaining the highest safety standards while simultaneously ensuring a smooth transition without grounding of aircraft, DGCA constituted a dedicated project team which coordinated the necessary actions to secure regulatory approvals in a time-bound manner.

The approval process for this merger involved reviewing organizational structures and approvals, ensuring a seamless transfer of aircraft and personnel, and safeguarding the safety of ongoing operations.

The merger required the alignment of facilities, personnel, procedures, and fleet assets spread across multiple locations.

DGCA also evaluated the personnel needs of the merged airline, ensuring that the workforce was appropriately trained and distributed to meet the demands of the expanded fleet, which is critical for maintaining safety and operational efficiency.

The DGCA also reviewed aircraft lease agreements and insurance documentation to ensure compliance with both domestic and international aviation regulations.

To ensure the process remained on track, DGCA created a live tracker for real-time monitoring of progress at a granular level.

This live tracker was shared by DGCA with the senior management of the airline as a facilitative intervention tool to continuously review and assess progress, including timelines.

The DGCA will closely monitor post-merger operations to ensure ongoing compliance with all regulatory conditions, safeguarding consumer interests and ensuring the continued safety of air operations in India.