Tata Group-owned AirAsia India has transferred its first A320 plane to Air India Express, marking a significant step in the process toward final merger to create a single low-cost subsidiary of Air India.
“This transfer will be progressively followed by all other aircraft so that, eventually, our two LCCs (low-cost carriers) become one and we have full flexibility to deploy aircraft in the most optimal and efficient manner across our low-cost network,” Air India's chief executive officer & managing director Campbell Wilson told employees on Friday.
AirAsia India and Air India Express currently have 28 and 26 planes in their respective fleets. The merger of AirAsia India into Air India Express is anticipated to be completed by March next year.
Meanwhile, Wilson said Air India inaugurated a new Engineering Mega Warehouse in Delhi to store over one million aviation-related spares. The facility is spread across 53,765 sq.ft and is located near the New Delhi’s IGI airport. The warehouse in Delhi is temperature and humidity- controlled to ensure optimal conditions for sensitive aviation material, he said.
“This world-class facility is the first of its kind for any airline in India, and is key to supporting our growing fleet and enabling the operational reliability we must achieve. Similar consolidation and upgradation will now be pursued in Mumbai to bring nearly 40 separate storage locations under one roof,” Wilson added.
In July, Air Asia India received regulatory approvals to operate the airline’s flights under the ‘Air India Express’ branding prior to the subsequent legal merger between the two airlines to create a single low-cost subsidiary.
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This will enable the two airlines’ flights to be marketed, distributed and operated under the common brand name of Air India Express.
In September, Air India Express and AirAsia India started interline bookings which enable travellers to reserve a single itinerary (with a unified PNR) encompassing both carriers.
The same month, Air India Express received its first two B737 Max aircraft from Boeing. These planes are a part of the 470-aircraft order that Air India placed in February.
Air India had placed an order for 250 planes from the European aircraft manufacturer Airbus and 220 from Boeing. This order ranks as the world's second-largest single-tranche aircraft acquisition. The Boeing order comprises 190 B737 MAX, 20 B787s, and 10 B777s.
It is expected that 50 of the 190 MAX planes ordered will join Air India Express’ fleet by December next year.
The Tata Group is also in the process of merging Vistara into Air India.