The Directorate General of Civil Aviation (DGCA) has approved the merger of AIX Connect (AIXC), formerly known as AirAsia, with Air India Express (AIX), the regulator said in a statement on Tuesday. All aircraft of AIXC were transferred onto AIX Air Operator Certificate, ensuring operations of the combined entity continued without disruption.
DGCA director general Vikram Dev Dutt said the merger sets a new benchmark for future airline consolidation, highlighting the importance of strategic regulatory oversight. “Air India Express Connect and Air India Express have demonstrated that this merger will create a more resilient and innovative airline, capable of competing effectively in the global market.”
He said rigorous review ensures that the merger serves the public interest by fostering safe air operations while enhancing the overall travel experience for consumers. “The insights gained from this experience will prove valuable for the upcoming merger of Air India and Vistara, which is currently in progress.”
The merger of AirAsia India/AIX Connect with AIX to create a low-cost carrier was announced in 2022. The National Company Law Tribunal approved the merger on June 12.
DGCA said that the approval process for the merger involved a review of organisational structures and approvals, ensuring a seamless transfer of aircraft and personnel, and safeguarding the safety of operations. The merger required the alignment of facilities, personnel, procedures, and fleet assets spread across multiple locations.
{{/usCountry}}DGCA said that the approval process for the merger involved a review of organisational structures and approvals, ensuring a seamless transfer of aircraft and personnel, and safeguarding the safety of operations. The merger required the alignment of facilities, personnel, procedures, and fleet assets spread across multiple locations.
{{/usCountry}}DGCA said the merger was complex involving the integration of aircraft, pilots, cabin crew, engineers, operational control systems, aircraft maintenance, certification procedures, and a wide range of contracts, vendors, and back-end systems.
Typically such mergers require grounding the fleet during the transfer of aircraft which often inconveniences passengers and causes financial strain.
DGCA said a dedicated team was constituted to maintain the highest safety standards while simultaneously ensuring a smooth transition without the grounding of aircraft. “[The] team coordinated the necessary actions to secure regulatory approvals in a time-bound manner.”
AIXC and AIX worked under DGCA to develop a unified set of processes, systems, and procedures that complied with regulations and incorporated efficient practices. “Once the harmonised operating manuals were in place, both airlines operated under common procedures and conducted the necessary bridge training for their personnel under DGCA’s oversight. After a successful demonstration of the harmonised procedures, the integrated manuals were approved by DGCA. In addition, the organizational structure and mandatory post holders were reviewed and approved for the merged entity,” DGCA said.
The regulator evaluated the personnel needs of the merged airline so 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.
It said that it reviewed aircraft lease agreements and insurance documentation to ensure compliance with domestic and international aviation regulations. DGCA created a live tracker for real-time monitoring of progress at a granular level.
Dutt said they closely monitored post-merger operations to ensure ongoing compliance with all regulatory conditions, safeguarding consumer interests and ensuring the continued safety of operations.
AIX managing director Aloke Singh said about a year ago, they started the integration, bringing the two organisations together behind a common brand. He said they worked on the complex integration exercise culminating into the merger.
AIX chairman Campbell Wilson said the merged entity will cater to the growing demand for air travel around India and in the region, especially among the country’s aspirational youth looking for fresh and more appealing value products. “This merger will be followed by the merger of Vistara into Air India on 12 November.”