NEW DELHI, Aug 19 – AirAsia (India) Pvt Ltd is fine with thin margins as it aims to make air travel a common mode of transport between small towns and cities in the country, Chief Executive Officer Mittu Chandilya says.
More than half of its passengers will be first-time flyers from Tier-II and -III towns.
Airline travel is no longer a luxury product and AirAsia will take it a step further with “consistent and sustainable” pricing.
“The company is “OK” with thin margins,” The Hindu” newspaper reported quoting Chandilya as saying.
AirAsia (India), a joint venture between AirAsia of Malaysia, Tata Group and Arun Bhatia of Telestra Tradeplace, an investment firm, is awaiting statutory clearances to launch its service.
Chennai will be one of its important hubs, Chandilya said.
While the government clearances are bound to take time, AirAsia is well geared to launch its services within a month of approvals, hopefully before Deepavali, he said.
He was addressing the media after announcing AirAsia as the travel partner for the first visually challenged national football team that is to participate in an international tournament in Thailand between today and Thursday.
Chandilya said the budget carrier has recruited over 200 staff, about half of them cabin crew, and will have over 450 by the time it launches its service.
AirAsia may be a low-cost carrier but it will not skimp when it comes to safety, security and travel comfort.
The low pricing will not be a reflection of the service levels in the aircraft which will be of top quality, he said.
It has a fleet of four A320s though they are not in India yet. Two of them are ready in Toulouse, France, and in Malaysia.
It will focus on expanding its fleet with A320s as part of keeping its business model simple, said the report.
– BERNAMA
