Air India’s budget airline, Air India Express, is poised for substantial growth, with plans to introduce 20 to 24 new aircraft into its fleet within the next year. This significant expansion was announced by a senior executive from the airline.
Currently, Air India operates a substantial fleet of 110 aircraft, which includes models like the Airbus A320/A321 and Boeing 737, including the 737 Max. The introduction of these new planes is contingent on the smooth functioning of the supply chain and production timelines at Boeing’s manufacturing facilities.
The airline’s strategy for expansion is heavily geared towards strengthening its domestic presence. Managing Director Aloke Singh highlighted that the domestic market is expected to witness faster growth compared to the international network.
“About two years ago, as much as 60 per cent of the network was short-haul international network and the remaining 40 per cent domestic. Today, it is about 50-50 per cent. We have been growing international short-haul as well. But we have been growing faster in the domestic Indian market,” Singh stated.
Looking ahead, Air India Express aims to continue this growth trajectory in the domestic sector. The strategy for the domestic network is focused on achieving ‘depth before spread,’ meaning the airline intends to establish a strong presence on key city pairs before expanding to a wider range of routes.
The airline’s core focus remains on serving routes that connect major metropolitan areas to tier 2 and tier 3 cities. Currently, approximately 80% of its domestic capacity is dedicated to these routes, which also represent the fastest-growing segment of the Indian aviation market.
Air India Express is targeting leisure travelers, value-conscious customers, and the SME market, primarily through its metro-to-non-metro routes, while also continuing to serve short-haul international destinations.