Neelam Mathews

Even as Malaysia’s AirAsia and its affiliates&nbsp;in Thailand, Indonesia and the Philippines initiate operations to India, nearly three-year old AirAsia India continues preparations for international operations next year while serving as a domestic feeder to its group. India’s civil aviation policy mandates a domestic carrier must fly three years and operate at least 20 aircraft before launching international flights.


Now flying eight Airbus A320s, AirAsia India plans to increase its fleet size to 14 by October and to 20 by autumn 2018, Amar Abrol CEO told AIN. The airline will primarily connect metropolitan centers to second-tier cities as it expands. “The overall strategy is route dominance rather than getting hammered everywhere,” said Abrol. AirAsia India leases its aircraft, which average seven years of age, from Frontier Airlines of the U.S. It plans to begin taking A320neos after it takes its 20th current-generation A320.


AirAsia took delivery of its first A320neo last September and plans to accelerate deliveries this year for its Malaysian and Thai operations.


As Indian budget carrier IndiGo expands rapidly in the domestic market, AirAsia India appears unlikely to initiate a head-to-head challenge, choosing instead to become a domestic feeder to its parent airline while also using bilateral rights to fly to Asian destinations not yet fully exploited by operators. “IndiGo’s expansion is humongous,” acknowledged Abrol. As the largest budget airline group in Asia, AirAsia sees its focus “naturally” on Southeast Asia, where it has established infrastructure. “We literally don’t have to do anything; we just have to land up in Kuala Lumpur, Bangkok...airports are ready, staff is already there. It’s all there,” Abrol said. AirAsia Indonesia will soon start Bali-Mumbai flights, AirAsia Thailand flies into Kolkata, AirAsia Malaysia flies into Bhubaneswar and AirAsia X wants to increase frequency to Delhi. “Routes beyond Singapore, Bangkok and Kuala Lumpur have hardly any flights from India,” Vishok Mansingh, CEO&nbsp;of Mumbai-based consultancy&nbsp;CAV&nbsp;Aero Services told AIN. He added that AirAsia’s fares, often under $75, to Asia “fit the bill” for cost-conscious Indians.


However, saturated airport infrastructure in Mumbai, Bangalore and Delhi could well become a constraint to growth for connecting city pairs, cautioned Abrol. “Getting a prime slot is next to impossible,” he said.


AirAsia Berhad, through AirAsia Investment, Ltd., owns 49 percent in AirAsia India. The Tata group owns 49 percent, and two directors of AirAsia India—S. Ramadorai and R. Venkataramanan—own the rest.

News about commercial airlines, including regulations, aircraft orders, safety, acquisitions, and mergers.

AirAsia India Firms Plans for International Launch

Expects to meet regulatory requirements for overseas expansion by autumn 2018

2024 Corporate Aviation Leadership Summit

Charles Alcock

News and developments about airplanes, helicopters and unmanned air vehicles used in all varieties of operations, including airlines, military, business, commercial, general aviation and private.

News about environmental issues relating to aircraft operations, including noise issues, emissisions, and regulations. See Fuel for biofuel.

News and issues relating to international air transport and cargo carriers, national airlines and regional airlines, including aircraft, engines, personnel, acquisitions, accidents, safety, security and training.

Agreement between start-ups could lead to orders for up to 15 aircraft

Skyhop Plans Island Routes With Noemi's Electric Seaplane

Howard Hardee

Airline plans to gradually replace its Embraer E-Jet fleet

A220’s Performance Drives BermudAir’s Fleet Growth

Partners say eVTOLs could accelerate response times in crowded Indian cities

Air India Backs SkyDrive Emergency Medical eVTOL Plans

News and issues relating to the aerospace industry that are related to the science, engineering and business of flight in space involving civil, industrial and military applications, and similar topics related to flight in the atmosphere of the Earth that are not covered more directly by other AINonline subject channels. In other words, both astronautical and aeronautical subjects, except for those aeronautical topics that are specifically covered elsewhere on this website.

Rival Boeing arguably claimed bragging rights at the Farnborough International show

Airbus Balances Shareholder Returns and New Aircraft

New developments at airports including regulations and noise issues; legal disputes; openings, acquisitions and mergers.

Connections to London Heathrow and Manchester airports will start first

Virgin Firms Up eVTOL Air Taxi Alliance with Joby

News and developments about everything that goes into the cabin of an aircraft, from floor coverings to headliners, with a special emphasis on in-flight entertainment, communications and other electronics for passengers. If it is in the cabin of an aircraft, it’s covered here.

More In Airlines

Skyhop Plans Island Routes With Noemi's Electric Seaplane

Agreement between start-ups could lead to orders for up to 15 aircraft

A220’s Performance Drives BermudAir’s Fleet Growth

Airline plans to gradually replace its Embraer E-Jet fleet

Air India Backs SkyDrive Emergency Medical eVTOL Plans

Partners say eVTOLs could accelerate response times in crowded Indian cities

Airbus Balances Shareholder Returns and New Aircraft

Rival Boeing arguably claimed bragging rights at the Farnborough International show

Virgin Firms Up eVTOL Air Taxi Alliance with Joby

Connections to London Heathrow and Manchester airports will start first

ATR Chases New Regional Markets for Twin Turboprops

Iran war and wider geopolitical pressure stall buying decisions

Embraer Racks Up E-Jet Orders at Farnborough

30 firm orders led by Abra

Gulf Air May Buy JetZero’s Blended-wing-body Z4

Japan Airlines also expresses interest at Farnborough Airshow

AIN Products

SUBSCRIPTIONS

RESOURCES

ABOUT AIN