Mumbai: With a strong focus on cost efficiencies Air Asia will start its India operations with 3-4 airbus A320 planes from Chennai and will not fly to high cost airports like Mumbai, airline chief executive Tony Fernandes said on Thursday.
Air Asia will be investing $30-60 million in its Indian airline and will announce its chief executive officer in next 2-3 weeks.
Last year Air Asia had pulled out of Mumbai and Delhi routes citing steep aeronautical tariffs and taxes and its Indian operations will have clear focus on tier II and III cities using airbus planes. Fernandes also ruled out using turbo prop planes like Bombardier Q-400s or ATR-72s flown by other airlines in India.
On Wednesday the Malaysia-based airline announced it had submitted an application to Foreign Investment Promotion Board to invest 49% into a proposed Indian joint venture together with Tata Sons Limited and Arun Bhatia of Telestra Tradeplace Pvt. Ltd..
"Our initial capital will be $30-60 million. We have a strong distribution system, network and we have low cost structure,'' Fernandes said. He said he airline will start its operations from Chennai and hopes to start operations by last quarter of the year.
22/02/13 Business Standard
