Air India express aims for second place with 50 Boeing 737 max planes

24 Aug 2023 CW Team

Tata-owned Air India Express is embarking on an ambitious expansion strategy, intending to deploy 50 Boeing 737 Max planes by the end of 2024. This move comes as the airline seeks to secure a strong second position in India's fiercely competitive domestic aviation market, positioning itself behind market leader IndiGo. Currently operating 25 aircraft, Air India Express is in the process of merging with AirAsia India, which operates 28 Airbus A320neo planes. This consolidation will create the second largest low-cost carrier in India, significantly enhancing its market presence.

The expansion plan will be executed in two phases. The first phase involves adding 25 planes by June next year, with the initial aircraft joining the fleet in October. The subsequent phase will take place from August to December 2024. Notably, the airline's expedited growth is due in part to acquiring 737 Max planes originally designated for Chinese airlines amid the US-China tensions, enabling faster deliveries.

Air India Express's strategic focus is on strengthening existing domestic and international routes before expanding to new destinations. The airline has already received regulatory approval to operate under the common brand of Air India Express along with a codeshare agreement with Air India, enabling seamless connectivity.

Air India Express stands as the sole profitable airline within the Tata Group's aviation portfolio, having reported a profit of Rs 1.16 billion in fiscal year 2023. This profitability positions the airline strongly in the Tata Group's efforts to merge its aviation entities into two distinct carriers – a low-cost airline and a full-service carrier.

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