Tuesday, July 09, 2013

A tough challenge awaits Tony Fernandes in India

New Delhi: Tony Fernandes, AirAsia's media-savvy boss, knows how to market his airline. Last week, when Fernandes, 49, came for a five-day tour of India, he gave quotable bytes at press conferences in various cities, paraded his handsome India CEO, Mittu Chandilya, and even tweeted a picture of his low-profile Indian partner, Ratan Tata, on the pilot's seat to fly him to Delhi! Serious business was conducted too. While in Delhi, Fernandes and friends met top government functionaries, including Civil Aviation Minister Ajit Singh. He also, for the first time, articulated his strategy in India which involves a frontal attack on rivals. Fernandes said that Indian low-cost carriers aren't really offering low-cost fares and he'll do all it takes to get those people to fly who can't afford to buy an air ticket now. A price war, clearly, is on the cards.
Fernandes made it clear that he is upset with the Mumbai and Delhi airport operators because their fees are very high, and because of that AirAsia will not fly to these two destinations - India's biggest cities. In fact, he wants the government to set up low-cost airports. Instead of flying to Delhi and Mumbai, Fernandes says he will prise open new, hitherto unexplored, routes.
08/07/13 Surajeet Das Gupta/Business Standard
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