NEW DELHI: India’s low cost carrier (LCC) space is in for a major rejig with Tata Group‘s mega Air India Express coming into being on Oct 1, 2024, when the process of merging erstwhile AirAsia India into it gets completed. The combined entity, with 7,000 employees, as of now has 84 aircraft (mainly Boeing 737s and a few Airbus A320s) and this number will grow to 100 before end of this calendar year.
Erstwhile AirAsia India was Tata Group’s re-entry into the airline space for the first time after JRD Tata launching Air India in 1932. It started flying in June 2024 and from Oct 1 its designator code I5 will cease to exist. Tata’s other JV airline, Vistara, which had started flying in Jan 2015, merges into AI on Nov 12.
With India the fastest growing aviation market globally, the LCC market here is set to rise exponentially in coming years. “The emergence of LCCs other than IndiGo should not be seen as competition to the latter as the market is too big for all but as choice for consumers. Having a strong alternate means players will have to improve in areas they are weak in. For IndiGo, it means improving the onboard experience for flyers. For AI Express, it means quickly expanding its network, frequencies and connecting city pairs. Akasa is to watch out for if it can arrange funding and get Boeing to deliver the ordered planes on time,” said an industry observer.
While market leader IndiGo is way ahead, the Tata LCC will position itself differently to appeal to passengers. “Our two main differentiators are that we have hot meals on board and are less formal on the branding side, appealing more to today’s traveller,” said officials.
Erstwhile AirAsia India was Tata Group’s re-entry into the airline space for the first time after JRD Tata launching Air India in 1932. It started flying in June 2024 and from Oct 1 its designator code I5 will cease to exist. Tata’s other JV airline, Vistara, which had started flying in Jan 2015, merges into AI on Nov 12.
With India the fastest growing aviation market globally, the LCC market here is set to rise exponentially in coming years. “The emergence of LCCs other than IndiGo should not be seen as competition to the latter as the market is too big for all but as choice for consumers. Having a strong alternate means players will have to improve in areas they are weak in. For IndiGo, it means improving the onboard experience for flyers. For AI Express, it means quickly expanding its network, frequencies and connecting city pairs. Akasa is to watch out for if it can arrange funding and get Boeing to deliver the ordered planes on time,” said an industry observer.
While market leader IndiGo is way ahead, the Tata LCC will position itself differently to appeal to passengers. “Our two main differentiators are that we have hot meals on board and are less formal on the branding side, appealing more to today’s traveller,” said officials.