Mumbai: AirAsia India is still paying higher lease rentals than prevalent market rates for its aircraft and parting with almost 30% of its revenue as payouts to its parent AirAsia Berhad or companies at the AirAsia Group, the carrier’s latest annual report showed.
The Malaysian low-fare carrier and Tata Sons each own 49% of AirAsia India. The rest is owned by non-executive director R Venkatatramanan and chairman S. Ramadorai.
For the year 2017, AirAsia India spent a total of RM 158.7 million ($39.68 million) on aircraft lease rentals, according to its latest annual report. It started the year with 8 planes and ended with 14. On an average, it paid $330,000 per month, per plane, rough calculations showed.
This, industry experts have said, is at least 25% higher than market rates.
An email to AirAsia on its payouts to the parent airline remained unanswered until the publication of this report.
AirAsia India’s fleet—currently 18—has an average age of 8.4 years. The age has increased as it inducted 4 planes aged over 10 years, in 2018. At the end of 2017, the average age of its planes was lower: 7.7 years.
07/06/18 Anirban Chowdhury/Economic Times
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The Malaysian low-fare carrier and Tata Sons each own 49% of AirAsia India. The rest is owned by non-executive director R Venkatatramanan and chairman S. Ramadorai.
For the year 2017, AirAsia India spent a total of RM 158.7 million ($39.68 million) on aircraft lease rentals, according to its latest annual report. It started the year with 8 planes and ended with 14. On an average, it paid $330,000 per month, per plane, rough calculations showed.
This, industry experts have said, is at least 25% higher than market rates.
An email to AirAsia on its payouts to the parent airline remained unanswered until the publication of this report.
AirAsia India’s fleet—currently 18—has an average age of 8.4 years. The age has increased as it inducted 4 planes aged over 10 years, in 2018. At the end of 2017, the average age of its planes was lower: 7.7 years.
07/06/18 Anirban Chowdhury/Economic Times
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