Air India Express Cuts Business Class Option

Because the cabin type does not entirely fit its low-cost airline model, Air India Express will phase out its tiny business class cabin on some B737 aircraft. Air India Express obtained the aircraft with its original cabin configurations, although other carriers subsequently cancelled their initial orders.

Thirty-three of Air India Express's B737-8s are equipped with a business class. Chinese operators ordered the aircraft and then acquired by Air India for its subsidiary. Due to the time and expense of converting the aircraft to an all-economy configuration, Air India Express initially opted to leave the aircraft in its current state, but it has since changed its mind.

“Having a business class on a part of our fleet does not fit well with our business model," an unnamed official told the daily. "We have been offering a premium product on these white-tails mainly because the planes already had business class seats. We wanted to press them into operations immediately instead of spending too much time reconfiguring the cabin."

Air India has ordered 190 B737 MAX models. Boeing will construct 140 aircraft following Air India's requirements, of which 50 were aircraft other operators had previously bought but later cancelled. Before the year ends, Air India Express hopes to deliver further B737-8s equipped with business class as part of this deal. They will also be rearranged into an all-economy configuration.

Expansion and Future Plans

Air India Express intends to grow, even though eliminating business class is undoubtedly a move toward cutting operating expenses. The airline intends to increase its fleet to 2024 aircraft by the end of 100, with 49 routes currently served across nine countries. By the end of 180, it is anticipated that there will be 2028 aircraft.

This expansion method is implemented when air travel picks up speed both domestically and internationally. The Indian market is particularly important. India's aviation industry is regarded as one of the fastest-growing globally, and budget carriers like Air India Express are well-positioned to take advantage of this development.

Another calculated move that will help improve Air India Express's standing in the market is the merger with AIX Connect. The two businesses coming together will allow them to take advantage of synergies and boost productivity, which will enhance the cost structure and boost the competitive advantage of the newly established airline.