New Delhi, 10 April - Air India Express, a wholly owned subsidiary of India’s flag carrier Air India, is set to undergo a significant transformation by the second quarter of 2026, aiming to become an all-economy airline. This strategic shift, announced by the airline’s managing director, Aloke Singh, in early 2025, reflects a broader vision to strengthen its position as a leading low-cost carrier in India’s rapidly growing aviation market. With a current fleet of over 100 aircraft and ambitious expansion plans, Air India Express is poised to cater exclusively to budget-conscious travelers by reconfiguring its aircraft to feature only economy-class seating, phasing out its existing business and premium economy offerings. The move is designed to maximize seat availability, reduce operational costs, and align with the rising demand for affordable air travel across India and its neighboring regions.
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The airline, which began operations in April 2005, has historically focused on providing low-cost connectivity from Tier II and Tier III cities in India to destinations in the Middle East and Southeast Asia. Its fleet currently comprises a mix of Boeing 737-800s, Boeing 737-8s, and Airbus A320-200Ns, some of which are configured with multi-class cabins, including business class and, in a few cases, economy plus sections. As of now, 36 of its 41 Boeing 737-8s feature eight business-class seats, while two others have four such seats, alongside varying economy-class configurations ranging from 150 to 186 seats. Additionally, 13 aircraft include 18 economy-plus seats each, and two A320-200Ns offer 12 business-class seats. By April 2026, Air India Express plans to reconfigure these aircraft, eliminating premium cabins to create a uniform all-economy layout. This overhaul will increase the total number of seats per plane, enabling the airline to accommodate more passengers per flight and drive down ticket prices, a critical factor in attracting price-sensitive customers.
The decision to transition to an all-economy model comes as part of a broader strategy under the Tata Group, which acquired Air India and its subsidiaries, including Air India Express, in 2022. Following the privatization, the Tata Group has sought to consolidate its aviation portfolio, merging Air India Express with AIX Connect (formerly AirAsia India) in October 2024 to streamline operations. The shift to an all-economy configuration aligns with this consolidation, positioning Air India Express as the group’s dedicated low-cost carrier, distinct from the full-service offerings of Air India. The airline anticipates a 50% increase in passenger numbers during the 2026 fiscal year, projecting to carry 30 million passengers annually by March 31, 2026, up from 20 million the previous year. To support this growth, Air India Express plans to induct 15 additional aircraft in FY2026, including 11 factory-new jets and four previously used airframes from Air India, with a long-term goal of expanding its fleet to 149 aircraft, comprising 50 Boeing 737-10s and 99 Boeing 737- 8s.
This transformation is not without precedent in the aviation industry, as many successful low-cost carriers worldwide, such as Southwest Airlines and Ryanair, have thrived by focusing solely on economy-class service. For Air India Express, the shift is expected to enhance operational efficiency by simplifying cabin maintenance, crew training, and inflight service processes, all of which are more complex in multi-class configurations. The airline’s current network spans 45 destinations, including 38 domestic cities and 17 international locations across nine countries, with primary hubs in Bengaluru, Hyderabad, and Delhi. By April 2026, it aims to expand to 55 destinations, capitalizing on India’s burgeoning demand for budget travel, particularly on non-trunk routes that connect smaller cities to larger hubs or international leisure destinations. The transition also reflects Air India Express’s response to market trends, where affordability and accessibility increasingly drive passenger preferences. By focusing on an all-economy model, the airline can optimize its resources to offer competitive fares while maintaining profitability through higher load factors and ancillary revenue streams, such as baggage fees and onboard sales. The reconfigured aircraft will begin entering service progressively, with the full transition expected to be complete by the second quarter of 2026, marking a new chapter for Air India Express as a purely low-cost carrier in the Tata Group’s aviation ecosystem.