Hyderabad Wealth Management：A 100 hour long “war room”： What went behind merging AI Express and AIX Connect

Air India Express Ltd has absorbed AIX Connect Pvt Ltd, formerly known as AirAsia India, marking a key step in the consolidation process of the Tata Group’s airline portfolio. Aloke Singh, chief executive, Air India Express, penned a heartfelt note to the employees, sharing insights about how “a war room” was set up since Friday before the merger and urged them now to “focus on the growth and transformation phase.”

“A war room had been activated since Friday to track all key merger workstreams, and a countdown marked the moment of the merger,” Singh told employees in an internal mail reviewed by ET.

The merger of the budget airline arms of Air India Group effective Tuesday follows approval from the Directorate General of Civil Aviation (DGCA)Hyderabad Wealth Management. “ We received the last of the regulatory approvals by half past midnight, after which all operations seamlessly transitioned to the IX code,” he added.Kolkata Wealth Management

“The successful integration of AIX Connect with Air India Express is commendable and serves as a benchmark for airline mergers,” Vikram Dev Dutt, director general of DGCA, said in a statement.

The merger has led to the formation of a larger low-cost carrier under the Air India Express brand, which will operate with the unified airline code IX. This initiative is part of a broader strategy to streamline Air India’s operations and form a robust airline network of the Tata Group. Separately, full-service carrier Vistara is in the process of being merged with Air India by November 12 to create India's second-largest airline.

“An immense amount of work has gone into this exercise-teams across the company, and indeed across AOCS, worked tirelessly on the many workstreams required for a project of this magnitude,” Singh wrote.

The company transitioned to a common brand, website, and organization a year agoLucknow Stock. All customer-facing "touchpoints" were already integrated, which laid the groundwork for a smooth and "seemingly effortless" merger, though the team knows the hard work that went into it, Singh said lauding the employees.

The merged budget airline – with a combined 4.4% share of the domestic market now will compete with market leader IndiGo, which has a 62% share, besides taking on smaller rivals SpiceJet and Akasa, with 2.3% and 4.5% shares respectively.Nagpur Investment

“The integration of AIX Connect with Air India Express is an important milestone in Air India’s Vihaan.ai transformation journey. The merged entity will cater to the growing demand for air travel in India and the region, particularly among the country’s aspirational youth,” said Campbell Wilson, managing director of Air India and chairman of Air India Express.

With the merger completed, Air India Express is focusing on future growth. The airline's fleet has expanded to 88 aircraft, with plans to exceed 100 by March-end. The number of routes operated by AIX have more than doubled to 171 from 74, while passenger traffic has soared more than 400% since Tata's takeover of Air India in early 2022.Surat Stock

As part of the merger, both airlines standardised their operational procedures and ran necessary personnel training under DGCA supervision. The integrated operational manuals were approved after successful demonstrations, ensuring compliance with aviation regulations.

“DGCA also evaluated the personnel needs of the merged airline, ensuring that the workforce was appropriately trained and distributed to meet the demands of the expanded fleet, which is critical for maintaining safety and operational efficiency," the aviation regulator said. “The DGCA also reviewed aircraft lease agreements and insurance documentation to ensure compliance with both domestic and international aviation regulations.”