Merger of Air India Express and AirAsia Indian to happen by end of 2023

The merger of budget carrier AirAsia India and Air India Express is expected to occur by the end of 2023, according to a statement released by Air India on Wednesday.

Air India, a company owned by the Tata group, has also signed agreements to own a 100% interest in AirAsia India. Air Asia Investment Ltd. and Tata Sons have partnered to create the carrier. Tata Sons owns 83.67 percent of the company, and AirAsia owns the remaining 16.33 percent.

By merging, which is anticipated to happen by the end of 2023, the Air India group will have a single low-cost carrier. According to a statement, the combined company will be known as Air India Express after the merger.

The two low-cost airlines, AirAsia India and Air India Express, will be merged as part of the reorganisation strategy planned for the Tata group’s airline industry, according to a statement from Air India.

“The assessment and implementation of the full integration process of AirAsia India and Air India Express, through a possible scheme of merger or otherwise and subject to necessary corporate approvals, is expected to take approximately 12 months, with network and other synergies to be realised progressively during that period,” the statement said.

Four airlines are currently a part of the Tata group. They are Vistara, AirAsia India, Air India, and Air India Express. This latter business is a partnership with Singapore Airlines. In January of this year, the Tata Group purchased Air India and Air India Express.

Air India has signed contracts to complete the acquisition of 100 per cent shareholding in AirAsia India.