In a recent development of integrating air operations, Tata group has successfully merged its low-cost carriers, AIX Connect (formerly known as AirAsia India) and Air India Express. India’s aviation regulator, the Directorate General of Civil Aviation (DGCA), on Tuesday put confirmation on this.

Nevertheless, it has been a great achievement for Tata Group, this merger comes under its Air India Transformation plan.  

With the merger, all aircraft from AIX Connect, which originally began as a joint venture between Tata Group and Malaysia’s AirAsia Berhad, have been transferred to Air India Express's Air Operator Certificate (AOC). AIX Connect has now ceased operations after more than a decade of serving the aviation market.

According to DGCA’s, official statement, "The requisite regulatory approval for the merger of AIX Connect into Air India Express has been granted... Effective October 1, 2024, all aircraft of AIX Connect have been transferred seamlessly to the Air Operator Certificate of Air India Express, ensuring uninterrupted airline operations to maintain a safe and smooth passenger experience."

The smooth merger, which merely took a year to complete has paved the path for other future airline mergers in India. The DGCA also marked that the completion of this process without grounding aircraft or causing passenger inconvenience sets a new benchmark for the industry. It also said that lessons learned from this merger would be valuable for the upcoming merger of Air India and Vistara, currently in progress.

DGCA Director General Vikram Dev Dutt stated, “This merger enhances the safety of air operations while also improving the travel experience for consumers. The experience gained from this process will be beneficial as we move forward with the merger of Air India and Vistara."

Once both mergers are complete, the Tata Group will operate two major airlines: Air India Express as a low-cost carrier and Air India as a full-service carrier. Air India Express, now fully under Air India’s ownership, was acquired by Tata from the Indian government in early 2022.

AirAsia Berhad, which was previously a partner in AIX Connect, exited the joint venture in 2022, selling its stake in phases to Tata. After this, the AirAsia India brand was retired in 2023, and AIX Connect began operating flights in sync with Air India Express, serving the combined route network. The expanded Air India Express now operates 88 narrow-body aircraft and is expected to surpass 100 planes by the end of the year. It operates 171 domestic and international routes.

Air India Express Managing Director Aloke Singh acknowledged the complexity of the merger and credited the collaboration between DGCA, the Ministry of Civil Aviation, and Tata’s leadership. “The integration of AIX Connect and Air India Express, both operationally and legally, has been a meticulous and well-coordinated effort,” Singh remarked.

The DGCA also emphasised its role in ensuring the merger was conducted without compromising safety, despite the challenges of integrating two operational airlines. In its statement, the DGCA noted, “Our role has been crucial in making sure all regulatory and safety standards were maintained throughout the merger process."

By working closely with stakeholders, the DGCA ensured that the transition happened smoothly without grounding any aircraft, thus maintaining continuous operations and preventing disruptions for passengers.