Air India’s new owner Tata Sons reportedly plans to merge LCC AirAsia India with Air India Express.
A merger will simplify the airline group’s business structure and cut costs.
Tata now owns a 84% stake in AirAsia India.
Tata Sons took control of Air India last month after the government accepted its winning bid for the cash-strapped national carrier.
The sale included low cost brand Air India Express.
Tata Sons has reportedly been in talks with management at AirAsia India and Air India to outline and integration plan to include aircraft fleets, flight schedules and workers.
Tata Sons is also working on setting up a holding company for all its airline businesses.
It also owns a majority stake in full service carrier Vistara in partnership with Singapore Airlines.
Vistara could in the future be merged into main carrier Air India.
