NEW DELHI: The consolidation of Tata airlines ’ portfolio has started from Tuesday with the Directorate General of Civil Aviation ( DGCA ) approving the merger of AIX Connect (AIXC) into Air India Express (AIX) effective Oct 1. On Nov 12, Vistara will merge into Air India and then the Tatas will have the full service mega AI with AI Express as its big low cost arm.
“Effective Oct 1, 2024, all aircraft of AIXC have been transferred seamlessly onto the air operator certificate (AOC) of AIX, ensuring that airline operations of the combined entity continue without disruption to ensure a safe and smooth passenger experience. The merger of AIXC and AIX was a complex endeavour involving the integration of aircraft, pilots, cabin crew, engineers, operational control systems, aircraft maintenance, certification procedures, and a wide range of contracts, vendors, and backend systems. Considering the safety challenges that arise during the merger of two running airline systems, DGCA’s role has been pivotal in ensuring that all regulatory and safety requirements have been meticulously complied with and effectively implemented,” the DGCA said in a statement Tuesday.
Typically, such a transition requires grounding the fleet during transfer of aircraft from one AOC to another, something that is bound to inconvenience passengers and impose financial strain on airlines. To prevent this, the regulator says it “proactively engaged with all stakeholders and initiated continuous extensive discussions aimed at creating a procedure that would ensure regulatory compliance.”
“The successful merger of AIXC and AIX sets a new benchmark for future airline consolidation, highlighting the importance of strategic regulatory oversight in the aviation industry . AIXC and AIX have demonstrated that this merger will create a more resilient and innovative airline, capable of competing effectively in the global market,” said DGCA DG Vikram Dev Dutt, adding, “Our rigorous review ensures that this merger serves the public interest by fostering safe air operations while enhancing the overall travel experience for consumers. The insights gained from this experience will prove valuable for the upcoming merger of Air India and Vistara, which is currently in progress.”
In order to maintain highest safety standards while simultaneously ensuring a smooth transition without grounding of aircraft, DGCA constituted a dedicated project team which coordinated the necessary actions to secure regulatory approvals in a time-bound manner. The approval process for this merger involved reviewing organisational structures and approvals, ensuring a seamless transfer of aircraft and personnel, and safeguarding the safety of ongoing operations.
The merger required the alignment of facilities, personnel, procedures, and fleet assets spread across multiple locations. The regulatory approval process was founded on five pillars: Harmonisation of operating manuals and procedures; review of the organisation structure and post holders; training requirements for flight & cabin crew, engineers, and other personnel; inspection and demonstration of harmonised procedures and training and lastly, post-merger validation and continued surveillance.
“After a thorough assessment, AIXC and AIX worked closely under DGCA’s guidance to develop a unified set of processes, systems, and procedures that complied with regulations and incorporated efficient practices. This collaborative effort led to a high degree of standardisation across the merged entity consequently enhancing safety margins,” the regulator said.
Once the harmonised operating manuals were in place, both airlines operated under common procedures and conducted the necessary bridge training for their personnel under DGCA’s oversight. After a successful demonstration of the harmonised procedures, the integrated manuals were approved by DGCA. In addition, the organisational structure and mandatory post holders were reviewed and approved for the merged entity.
“DGCA also evaluated the personnel needs of the merged airline, ensuring that the workforce was appropriately trained and distributed to meet the demands of the expanded fleet, which is critical for maintaining safety and operational efficiency. The DGCA also reviewed aircraft lease agreements and insurance documentation to ensure compliance with both domestic and international aviation regulations,” the statement said.
To ensure the process remained on track, DGCA created a live tracker for real-time monitoring of progress at a granular level. This live tracker was shared by DGCA with the senior management of the airline as a facilitative intervention tool to continuously review and assess progress, including timelines.
“The DGCA will closely monitor post-merger operations to ensure ongoing compliance with all regulatory conditions, safeguarding consumer interests and ensuring the continued safety of air operations in India,” the statement said.
“Effective Oct 1, 2024, all aircraft of AIXC have been transferred seamlessly onto the air operator certificate (AOC) of AIX, ensuring that airline operations of the combined entity continue without disruption to ensure a safe and smooth passenger experience. The merger of AIXC and AIX was a complex endeavour involving the integration of aircraft, pilots, cabin crew, engineers, operational control systems, aircraft maintenance, certification procedures, and a wide range of contracts, vendors, and backend systems. Considering the safety challenges that arise during the merger of two running airline systems, DGCA’s role has been pivotal in ensuring that all regulatory and safety requirements have been meticulously complied with and effectively implemented,” the DGCA said in a statement Tuesday.
Typically, such a transition requires grounding the fleet during transfer of aircraft from one AOC to another, something that is bound to inconvenience passengers and impose financial strain on airlines. To prevent this, the regulator says it “proactively engaged with all stakeholders and initiated continuous extensive discussions aimed at creating a procedure that would ensure regulatory compliance.”
“The successful merger of AIXC and AIX sets a new benchmark for future airline consolidation, highlighting the importance of strategic regulatory oversight in the aviation industry . AIXC and AIX have demonstrated that this merger will create a more resilient and innovative airline, capable of competing effectively in the global market,” said DGCA DG Vikram Dev Dutt, adding, “Our rigorous review ensures that this merger serves the public interest by fostering safe air operations while enhancing the overall travel experience for consumers. The insights gained from this experience will prove valuable for the upcoming merger of Air India and Vistara, which is currently in progress.”
In order to maintain highest safety standards while simultaneously ensuring a smooth transition without grounding of aircraft, DGCA constituted a dedicated project team which coordinated the necessary actions to secure regulatory approvals in a time-bound manner. The approval process for this merger involved reviewing organisational structures and approvals, ensuring a seamless transfer of aircraft and personnel, and safeguarding the safety of ongoing operations.
The merger required the alignment of facilities, personnel, procedures, and fleet assets spread across multiple locations. The regulatory approval process was founded on five pillars: Harmonisation of operating manuals and procedures; review of the organisation structure and post holders; training requirements for flight & cabin crew, engineers, and other personnel; inspection and demonstration of harmonised procedures and training and lastly, post-merger validation and continued surveillance.
“After a thorough assessment, AIXC and AIX worked closely under DGCA’s guidance to develop a unified set of processes, systems, and procedures that complied with regulations and incorporated efficient practices. This collaborative effort led to a high degree of standardisation across the merged entity consequently enhancing safety margins,” the regulator said.
Once the harmonised operating manuals were in place, both airlines operated under common procedures and conducted the necessary bridge training for their personnel under DGCA’s oversight. After a successful demonstration of the harmonised procedures, the integrated manuals were approved by DGCA. In addition, the organisational structure and mandatory post holders were reviewed and approved for the merged entity.
“DGCA also evaluated the personnel needs of the merged airline, ensuring that the workforce was appropriately trained and distributed to meet the demands of the expanded fleet, which is critical for maintaining safety and operational efficiency. The DGCA also reviewed aircraft lease agreements and insurance documentation to ensure compliance with both domestic and international aviation regulations,” the statement said.
To ensure the process remained on track, DGCA created a live tracker for real-time monitoring of progress at a granular level. This live tracker was shared by DGCA with the senior management of the airline as a facilitative intervention tool to continuously review and assess progress, including timelines.
“The DGCA will closely monitor post-merger operations to ensure ongoing compliance with all regulatory conditions, safeguarding consumer interests and ensuring the continued safety of air operations in India,” the statement said.
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