AirAsia Bhd., the region’s biggest budget carrier, is considering offering some seats for free when it starts flying in India, a move that may frustrate rivals seeking to recoup $6.6 billion of losses.
The operator plans to give away vacant seats for nothing at airports, expanding similar promotional offers at home in Malaysia, a company official with direct knowledge of the matter said, asking not to be named citing rules. Passengers will have to pay taxes and other fees, the person said. AirAsia, which is awaiting a license after winning the Indian government’s approval this month to form a joint venture, is targeting to start operations by end-2013.
Chief Executive Officer Tony Fernandes, who has said ticket prices will be the “No. 1 differentiator” in India where 60 percent of the market is controlled by discount airlines, is counting on the South Asian country for growth. His strategy may threaten a recovery at Jet Airways (India) Ltd. and SpiceJet Ltd., which are raising fares to cover costs after cash-strapped Kingfisher Airlines Ltd. ended operations in October.
24/03/13 Karthikeyan Sundaram/Bloomberg/Skift.com
