Air India Express shifts to economy-only fleet, plans 110 aircraft by FY25 amid Boeing delivery delays

Air India Express, the low-cost arm of Air India, has announced a strategic shift to a fully economy-class fleet by April 2025. The decision to phase out business-class seating across its entire fleet is part of the airline’s broader objective to streamline operations, cater to budget-conscious travelers, and maximize capacity on its short to medium-haul routes. This move aligns with industry trends where low-cost carriers (LCCs) are increasingly focusing on all-economy configurations to drive profitability and reduce operational complexity.

The airline’s fleet currently consists of 90 aircraft, including Boeing 737 NGs, 737 Max-8s, and Airbus A320s. By the end of FY2024-25, Air India Express plans to expand its fleet to 110 aircraft. This expansion is primarily driven by the integration of 20 Airbus A320 aircraft from Air India, which will be absorbed following the merger with AIX Connect (formerly AirAsia India). However, the airline has faced delays in receiving Boeing aircraft due to disruptions in Boeing’s production process.

The delays, caused by a seven-week-long strike involving 33,000 Boeing factory workers in the United States, have impacted the delivery schedule for Boeing 737 Max jets. Air India Express was originally slated to receive several of these aircraft as part of its fleet expansion, but the ongoing production delays have postponed the expected delivery timeline. While the strike is set to end soon, the ripple effects on Boeing's production and handovers could still result in further delays for Air India Express’s fleet growth.

Despite these setbacks, the airline remains committed to its expansion goals. Air India Express is actively working with Boeing and Airbus to manage the situation and adjust its delivery schedules. The airline’s fleet growth will now be more reliant on the Airbus A320 family, which will be sourced from Air India. The transition to a fleet dominated by Airbus aircraft, while retaining some Boeing 737s, is part of Air India Express’s plan to modernize its fleet and reduce reliance on older aircraft models.

Beyond the fleet expansion, Air India Express is also looking to increase its operational capacity. The airline aims to achieve a target of 2.4 million passengers per month by March 2025, a sharp increase from the current monthly traffic levels. The airline plans to achieve this through the addition of new routes, expanding both domestic and international operations. This includes launching new services to smaller Tier-2 and Tier-3 cities across India, which will be connected to key metro hubs, as well as expanding its international routes, particularly to the Gulf, Southeast Asia, and potentially South Asia and the Far East.

In addition to increasing the number of routes, Air India Express is focused on boosting its market share in the low-cost carrier segment by offering more affordable travel options. This is expected to put pressure on competitors such as IndiGo and SpiceJet, while also tapping into growing demand in both the domestic and international budget travel sectors. The airline’s long-term strategy includes enhancing its customer service offerings, optimizing operational efficiencies, and maintaining a competitive edge in the increasingly crowded LCC market. Air India Express is also preparing to launch services to popular international destinations like Bangkok and Phuket, responding to rising demand for budget travel to key Southeast Asian tourist spots.