TBM Staff - Mumbai
Air India Express flights are adopting the parent Air India’s AI code, replacing its own IX code. Similarly, Vistara flights will soon transition to using the AI code, replacing its current UK code. Erstwhile AirAsia India already operates using the AI code.
The Tata Group is integrating erstwhile AirAsia India into Air India Express, forming a significant budget carrier. Additionally, Vistara is being integrated into Air India to create a major full-service airline, a move causing considerable concern among former employees.
“Air India now designates the ‘AI’ code on Air India Express (IX) operated flights, facilitating AIX to benefit from AI’s global sales and distribution network. This collaboration allows AI to expand its network with nine additional destinations and hundreds of extra frequencies operated by AIX. Customers will also enjoy the convenience of seamless check-in and baggage tagging,” stated AI MD-CEO Campbell Wilson on Friday.
Both mergers are slated for completion within this calendar year. Integrating diverse work cultures from different airlines has historically posed challenges. India has witnessed the merger of erstwhile Indian Airlines into erstwhile Air India, Sahara into Jet, and Deccan into Kingfisher, with adverse outcomes, particularly for the promoters of the latter two, Naresh Goyal and Vijay Mallya.
The Tatas are concurrently managing two mergers involving virtually five airlines: erstwhile AI & IA, Vistara, erstwhile AirAsia India, and Air India Express. The success of these mergers is crucial for the Indian aviation sector. India, given its market size, requires at least 2-3 major airlines (similar to the US), including IndiGo, Tata Group airlines, and potentially one or two more robust players emerging over time, as stated by a senior pilot.
Between February 2023 and January this year, IndiGo, Tata Group, and Akasa have placed orders for over 1,100 aircraft worth USD 140 billion at list prices. Consequently, mega airports are being developed in India by both private and public sectors to accommodate this growth.
