Tuesday, March 12, 2013

Will AirAsia Be a Game Changer for Indian Aviation?

When India opened its ailing aviation sector to foreign airlines last September, not many thought the sector, which is reeling under heavy losses, would attract foreign investment.
A few months down the line and AirAsia, a successful budget carrier based in Malaysia, has tied up with Indian conglomerate the Tata Group and another Indian investor to set up a new airline called AirAsia India. This has ignited hope in an industry, which despite seeing a huge growth in passenger numbers is suffering due to over-regulation and intense price competition.
"Having a foreign carrier such as AirAsia come in, is a good sign," Binit Somaia, South Asia director at the Centre for Aviation (CAPA) said. "They have experience, expertise, good management - all of that - if they bring it into the country, it helps lift the entire industry."
12/03/13 Rajeshni Naidu-Ghelani/CNBC