Air India’s budget carrier, Air India Express, has announced ambitious plans to enhance its fleet by adding 20 to 24 aircraft in the next calendar year. This significant move was revealed by the airline’s Managing Director, Aloke Singh.
Currently, Air India operates a substantial fleet of 110 aircraft, including Airbus A320/A321 and Boeing 737 models. Singh mentioned that the exact number of new aircraft inducted will be contingent on supply chain operations and the production progress at Boeing’s manufacturing facilities.
The airline is strategically focusing on bolstering its presence within the domestic Indian market, anticipating faster growth in this segment compared to its international routes. “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 intends to maintain this growth trajectory. Singh elaborated on the domestic strategy, emphasizing ‘depth before spread.’ This approach involves establishing a strong presence on key city pairs, aiming for a significant market share on these routes. The primary focus remains on connecting major metropolitan areas with tier 2 and tier 3 cities, which represent a substantial and rapidly growing segment of the domestic travel market.
Currently, approximately 80% of Air India Express’s domestic capacity serves routes between metros and non-metros, specifically targeting tier 2 and tier 3 cities. The airline’s overall network strategy involves concentrating on metro-to-metro routes that carry a high volume of business travelers, alongside its long-haul international operations.
Air India Express is particularly keen on serving leisure markets, value-conscious travelers, and small to medium-sized enterprises (SMEs). Their focus on value-driven segments, primarily from metros to non-metros, alongside short-haul regional international routes, underpins their expansion plans.