AirAsia may contest with IndiGo for flights to India

Paris: AirAsia Bhd plans to boost flights to India, paving the way for a contest with IndiGo after the two low-cost airlines placed record orders for Airbus SAS planes last week.
AirAsia will use its Bangkok hub as the focus for its Indian expansion, Chief Executive Officer Tony Fernandes said in a June 23 interview at the Paris Air Show, after the Sepang, Malaysia-based carrier ordered 200 A320neo planes. IndiGo, which confirmed a deal for 180 A320s a day earlier, is set to begin overseas flights, including to Bangkok, in September.
Thai AirAsia Co will likely boost its fleet to as many as 70 planes from 20 to support expansion in India and northern China, Tassapon Bijleveld, the unit's CEO, said at the show.
AirAsia, the region's biggest budget carrier, is targeting India and China as economic growth and rising wages stoke travel demand among the countries' 2.6 billion people.
AirAsia will target India and northern China from Bangkok because the city is closer to these markets than Kuala Lumpur, its home base, Fernandes said. That will help keep flight times under three hours, the company's preferred model, he said.
The Thai unit, which now flies to Kolkata and New Delhi, may add as many as six destinations in India, Tassapon said. It will also boost its China network by a similar number, he said. Presently, the unit's only destinations in mainland China are Guangzhou and Shenzhen. The carrier also flies to cities in Southeast Asia from Bangkok.
28/06/11 Bloomberg/Economic Times

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Categories: Foreign Jun 2011, Indigo Airlines Jun 2011