Airline promises 35% less fares than competitors.
By The American Bazaar Staff
NEW DELHI: AirAsia India, a joint venture between the larger Malaysian AirAsia airline, Tata Sons and Telstra, will officially get off the ground next month when its first flight takes off on June 12.
The joint venture, AirAsia India Pvt. Ltd. (AAIPL), will be a low-cost, no-frills airliner, just like its Malaysian big brother. It will offer just two routes: one that goes back and forth between Chennai and Bangalore, and another that goes to and from Bangalore and Goa. The hub for AAIPLE will be Chennai International Airport.
AAIPL CEO Tony Fernandes announced that tickets will go on sale Friday, May 30.
“Very very proud to announce AirAsia India open for sale tomorrow. Wow. First flight June 12th. [See] you all In India on the 12th,†he tweeted earlier today.
The AAIPL operation is a risky venture for all involved. AirAsia is the first major airliner to open a dedicated subsidiary in India, while the new junior airline represents Tata’s first foray into the aviation industry in some 60 years. AirAsia holds a 49% stake in the company; Tata Sons has 30% ownership, while Telstra makes up the other 21%.
In addition to offering low-cost flights to its customers, AAIPL will work towards creating faster service and tight turnaround times for its flights. The company hopes to have turnaround times down to just 25 minutes within the next three years. So far, the entire airliner is comprised solely of Airbus A320-200s, which it will roll out in small numbers.
The airliner has announced that it plans to make free Wi-Fi available on its flights. Additionally, Mittu Chandilya has said that he hopes to expand the airliner’s flight routes to include all major Indian metropolitan areas by the end of 2014. The only city that it will not service is Mumbai, which Chadilya said lacks the proper infrastructure, reports Daily News and Analysis.
The AirAsia website was not able to book tickets between on AAIPL routes at this time, saying that tickets were unavailable. Prices for these low-cost routes have also not yet been announced, but AAIPL has said that fares should be around 35% less than the standard rate at its competitors.
But what will be most interesting to watch is how AAIPL fares as India continues to reel from investigations by the US Federal Aviation Administration (FAA), rising costs for fuel, and an economy still recuperating from last year’s abysmally low rupee.
Other low-cost, no-frill airlines operating in India include GoAir, Air India Express, SpiceJet, and JetKonnect.