Thursday, February 21, 2013

AirAsia's India foray good news; see more competition: KPMG

Asia’s leading low-fare airline AirAsia Bhd is looking to enter the Indian aviation market along with the Tata group and Telestra Tradeplace, the firm said on Wenesday. This comes in the backdrop of the Indian government easing rules to allow overseas carriers to invest upto 49 percent in local carriers late last year.
Amber Dubey, head (aviation), KPMG India told CNBC-TV18 that he is extremely positive on AirAsia's plan to invest in India. "After the policy (FDI) change in September, we had predicted that there will be at least two-three equity infusions in existing airlines and there could also be one or two start ups," Dubey says.
Dubey feels that the deal will expand connectivity into regional routes on the tier 3-tier 4 sectors. "Passengers will see yet another fare war and ultimately over the next one or two years we may also see some consolidation in the Indian aviation sector," he told the channel.
20/02/13 CNBC TV18/