New Delhi, March 7 – AirAsia India says it is unperturbed by various attempts to stop it from taking to the skies and now aims to start operations in May 2014, having missed a few earlier targets since September last year.
“We may get the air operator permit (AOP) in about three weeks. Thereafter, we may commence operations in two months from Chennai,” Chief Executive Officer Mittu Chandilya told the The Hindu in an interview in Chennai on Wednesday.
Among others, the Federation of Indian Airlines has opposed the entry of AirAsia India stating this may force other airlines to run into further losses.
On Wednesday, the Delhi High Court sought the response of the central government and AirAsia India on a plea by the FIA which is opposing the go-ahead for the airline to begin its flight operations in the country.
The Chennai-based airline’s fares could be 25-30 per cent less than others, he reiterated.
“Other airlines will have to drop fares and this will benefit passengers. They could even match my reduced fares but whether they can manage costs in the long term has to be seen. But we can do it,” Chandilya had said to the English daily.
While the business scene in the Indian aviation industry has been gloomy with all the airlines, put together, recording a loss of US$500 million in September 2013, Air Asia’s decision to venture in at this point in time, and with offers of free seats, can be quite a challenge, said the report.
“The industry has been dynamic and the best time to venture into something is when things are very bad. I firmly believe when you hit rock bottom, the only way is up,” he said.
As for the free seats, he said they could comprise 10 per cent to 50 per cent of total seats for certain flights and destinations.
AirAsia India is a joint venture with Tata Group and Telestra Tradeplace Pvt Ltd. It got approval for a US$30 million deal from the Foreign Investment Promotion Board last April, and a no-objection certificate from the civil aviation ministry last September.
– Bernama
