Air India Express Aims to Induct 20-24 Aircraft in 2026 to Strengthen Domestic Market Presence

Air India Express, the budget division of Air India, plans to add 20 to 24 aircraft to its fleet next year. Currently, Air India and its low-cost arm operate a combined fleet of 282 planes. Of these, 110 are with Air India Express, including Airbus 320/321 and Boeing 737 models. Aloke Singh, Air India's Managing Director, shared these details at an event showcasing the first retrofitted aircraft of Air India Express.

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Singh mentioned that the delivery of these new aircraft depends on supply chain conditions and Boeing's production schedule. The airline expects all 50 white-tail Boeing 737-8 planes to be converted into a single-economy-class layout by mid-next year. These aircraft are part of a larger order of 470 planes placed by the Air India Group with Boeing and Airbus.

Fleet Expansion and Market Strategy

The order includes 50 white-tail B737 Max planes. White-tail aircraft are initially built for a specific airline but sold to another if the original buyer declines delivery. Singh stated that Air India Express anticipates receiving all 190 B737 Max planes from this order by 2030. Recently, the airline revealed new cabin interiors and onboard features for its latest Boeing 737-8 at Mumbai International Airport.

The new aircraft will feature ergonomically designed synthetic leather seats with enhanced padding, thicker armrests, and improved legroom. Each seat will have in-seat USB charging ports to keep passengers connected. Additionally, brand-new carpets and advanced Boeing Sky Interior lighting will be installed. Hot Gourmair meals will be available with ovens to keep food warm.

Domestic Market Focus

Air India's fleet is interchangeable between its mainline and low-cost operations. Singh explained that capacity would be adjusted based on market demand and business model preferences. The narrow-body Airbus 320 family, Boeing 737, and Boeing 737 MAX are used almost equally by both airlines for domestic and short-haul international routes.

Air India Express aims to strengthen its presence in the domestic market, which is expected to grow faster than international routes. Two years ago, the network was split with 60% short-haul international flights and 40% domestic flights. Now, it's evenly divided at about 50% each.

Network Growth Strategy

Singh noted that Air India Express is expanding faster in the domestic market compared to international short-haul routes. In the coming years, this trend is expected to continue. The domestic strategy focuses on depth before spread, aiming for a significant presence on city-pairs with at least one-third market share.

The airline prioritises metro-to-tier-2 and tier-3 city routes, which account for nearly 80% of its domestic capacity. This segment is also the fastest-growing part of the domestic market. Meanwhile, Air India focuses on metro-to-metro routes and long-haul international flights with more business traffic.

Target Markets

Air India Express targets leisure markets, Visiting Friends and Relatives (VFR), small and medium enterprises (SMEs), and value-conscious travellers. These markets primarily involve metro-to-non-metro routes as well as short-haul regional international flights.

The Air India group holds around a 30% market share overall, with Air India Express contributing approximately 11-12%. However, Singh clarified that market share isn't a primary target since it depends on each player's capacity build-up.

Given the nature of India's domestic market and short-haul international routes, Singh believes there's a stronger inclination towards value-oriented travel models like low-cost carriers (LCCs). Therefore, most narrow-body capacity will likely operate under Air India Express's low-cost model.

With inputs from PTI