Tata Group to Expand Air India Express Fleet with Planes from Air India and Vistara

The Tata Group is planning to grow the fleet of its budget airline, Air India Express, by adding planes with all-economy seating from its full-service airlines, Air India and Vistara. This move aims to better compete with the market leader, Indigo.

According to sources, Air India and Vistara will transfer aircraft configured for all-economy seating to Air India Express. In the first phase, 17 Airbus A320 Neo planes from Air India will be transferred, along with 10 A320 Neo aircraft from Vistara once its merger with Air India is finalized. This transfer is expected to be completed by mid-2025.

Air India and Air India Express did not provide comments on this plan. Tata Group is restructuring its aviation business by merging four airlines into two: Air India and Air India Express. This will allow them to compete in both the premium and budget segments.

An insider mentioned that the positioning of the brands will be clear, with the all-economy planes fitting better in Air India Express, which will serve the no-frills market. By the middle of next year, Air India Express plans to add 17 planes from Air India and 15 Boeing 737 Max planes from its own orders, enhancing its capacity.

Data from OAG shows that India has the largest share of low-cost carriers (LCCs), which make up 71% of the total airline capacity in the country.

Earlier this month, Air India Express received final approval from the Directorate General of Civil Aviation (DGCA) to merge with the business of the former AirAsia India, creating a single entity. The insider noted that the airline will leverage its expanded fleet and network in the domestic market and short-haul international routes, benefiting from the synergies of the merger with Air India.