Aerospace

AirAsia India to merge with Air India Express by end of 2023

The bold Low-Cost Carrier strategy from Tata will change the game.

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Merger likely by end-2023; to be branded Air India Express Milestone in transformation agenda to bring in efficiencies and enhanced scale

New Delhi, November 02, 2022: Air India today announced that it has signed agreements to complete the acquisition of 100% shareholding in AirAsia India (AAI) and to subsidiaries it under Air India. An operational review process is underway with a view to ultimately integrating AAI fully with Air India Express (AIXL). Consolidation of these two airlines, both of which operate as low-cost carriers, will be undertaken as part of the restructuring roadmap that is being envisioned for the Tata group’s airline business and is expected to bring customer, revenue, cost, and operational benefits through broader adoption of each airlines’ best practices, systems and routes, and the combined entity’s greater scale.

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A working group has been formed to evaluate and execute the integration of the AI Group’s low-cost operations, which will be co-led by Sunil Bhaskaran, CEO & MD, of AirAsia India, and Aloke Singh, CEO, of Air India Express. The working group will report to a committee chaired by Air India MD & CEO, Campbell Wilson.

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The assessment and implementation of the full integration process of AAI and AIXL, through a possible scheme of merger or otherwise and subject to necessary corporate approvals, is expected to take approximately 12 months, with network and other synergies to be realized progressively during that period. Commenting on the development, Mr. Campbell Wilson, CEO & MD, of Air India. said, “We are excited to initiate the creation of a single Air India Group low-cost carrier. This is a key step in the rationalization and transformation of the Group, and we will be working closely with the management teams and staff throughout the process. We also look forward to the many new opportunities a stronger AI Group low-cost carrier will bring for customers and staff alike.”

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Aerospace

EASA Ends Suspension on PIA, Approves Flights to Europe

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The suspension of Pakistan International Airlines (PIA) from operating in Europe is finally over, marking a significant turning point for Pakistan’s aviation sector.

After years of scrutiny and stringent safety assessments, the European Commission and the European Aviation Safety Agency (EASA) have officially lifted the ban on PIA. This decision also grants Airblue authorization to operate flights to Europe, further enhancing Pakistan’s connectivity with the region.

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PIA’s suspension, initially imposed in June 2020, was a direct consequence of concerns regarding the oversight capabilities of Pakistan’s Civil Aviation Authority (PCAA). These concerns were triggered shortly after a tragic PIA plane crash that claimed 97 lives, prompting an investigation into the validity of pilot licenses issued in the country.

Now, after four years of continuous efforts and reforms by the PCAA, EASA has expressed renewed confidence in Pakistan’s aviation regulatory framework. In a statement, EASA highlighted that Pakistan has successfully addressed safety compliance issues, enabling PIA to resume its operations within the European Union.

A spokesperson for PIA expressed optimism, emphasizing the airline’s commitment to strictly adhere to EASA’s regulations and guidelines. “This milestone has been achieved after four years of relentless efforts by the PIA management,” the spokesperson said.

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The lifting of the ban is expected to have a profound impact on PIA’s future. The airline, which employs over 7,000 people, has faced criticism in the past for poor management, financial instability, and regulatory challenges.

However, the restoration of European operations is seen as a vital step toward regaining its competitive edge, improving its financial standing, and restoring its reputation on the global stage.

Pakistan’s government, which has been exploring options to privatize the debt-laden national carrier, is hopeful that this development will attract foreign investment and bolster the country’s aviation industry.

With a renewed focus on compliance and safety, PIA is now poised to rebuild its presence in Europe, offering Pakistani travelers and international passengers more connectivity and improved service.