DGCA Grants Approval for Merger of AIX Connect and Air India Express

The Directorate General of Civil Aviation (DGCA) has granted regulatory approval for the merger of AIX Connect (formerly AirAsia) with Air India Express (AIX), effective October 1, 2024. All aircraft of AIX Connect have been transferred to the Air Operator Certificate (AOC) of Air India Express, ensuring seamless airline operations without disruption for passengers.

Setting a New Benchmark in Airline Mergers

The merger of AIX Connect and Air India Express is being hailed as a significant achievement, establishing a new standard for future airline consolidations. Vikram Dev Dutt, Director General of Civil Aviation, stated, “This merger will create a more resilient and innovative airline, capable of competing effectively in the global market.” DGCA’s strategic regulatory oversight was crucial in facilitating this successful merger.

Insights for Upcoming Air India and Vistara Merger

DGCA emphasized that insights gained from this merger will be valuable for the ongoing merger process between Air India and Vistara. The AIX Connect and Air India Express merger involved the integration of various operational aspects, including aircraft, personnel, maintenance, and backend systems, showcasing the complexity of such endeavors.

Ensuring safety during the merger of two active airlines is a significant challenge. DGCA played a pivotal role in ensuring that all regulatory and safety requirements were thoroughly complied with and implemented. Typically, such transitions involve grounding the fleet, but DGCA’s proactive engagement with stakeholders allowed for a smooth transfer without any disruptions.

To manage the merger efficiently, DGCA set up a dedicated project team to coordinate actions and secure regulatory approvals within a specified timeframe. A live tracker was created to monitor progress at a granular level, which was shared with senior management to ensure the process remained on track.

DGCA reviewed the organizational structure, facilities, personnel, and fleet assets of the merged airline to ensure compliance with aviation regulations. The workforce’s training and distribution were also evaluated to maintain safety and operational efficiency. Additionally, aircraft lease agreements and insurance documentation were reviewed to meet domestic and international regulations.

Post-Merger Monitoring

DGCA has committed to closely monitoring post-merger operations to ensure ongoing regulatory compliance, safeguarding consumer interests, and maintaining the safety of air operations across India.