Tata Sons has completed the acquisition of an additional 32% stake in Air India Express from existing shareholders, taking its total holding to 83.67% in the low-cost carrier. The transaction, valued at approximately Rs 3,200 crore, gives the Tata Group near-complete control of the budget airline and strengthens its aviation portfolio.
The move is part of Tata's broader strategy to consolidate its aviation holdings, which include full-service carrier Air India and regional airline AIX Connect. The group plans to invest heavily in fleet expansion, with Air India Express set to induct 50 new Airbus A320neo aircraft over the next two years, targeting both domestic and international short-haul routes.
The acquisition comes as India's aviation market recovers strongly, with domestic passenger traffic crossing 18 crore in FY26. Air India Express currently operates over 320 daily flights connecting 42 cities and is expected to break even at the EBITDA level in FY27. The Tata consolidation is seen as a major competitive challenge for IndiGo.
