Saturday, September 07, 2013

AirAsia may miss its December launch target

Mumbai: AirAsia may have to defer the launch of its domestic operations to early 2014 as the process for the issue of an operating permit can take upto three months. The airline which is targeting a December launch is still to secure a no objection clearance from the civil aviation ministry. Once it receives this clearance the airline will have to make an application for an operating permit.
Last month the Directorate General of Civil Aviation issued the air operator certification manual which stipulates the application for a permit must be submitted atleast 90 days before the date of intended revenue operation. Separately,  the regulator has drawn up a time line of tasks to be completed  within the 90 days and that includes document evaluation, inspection and five review meetings with the applicant. The 90 day period is an indicative time limit and the actual process can take place quicker or can stretch longer than three months in case of non completion of formalities. AirAsia will have to file a schedule with the DGCA to start services once it receives the permit.
November-December is a peak season for travel as it coincides with Diwali and Christmas holidays.  Passenger loads in the two months are strong and  allows airlines to charge higher fares. Thus ideally AirAsia would like to start its service in December as passenger drops in February-March. AirAsia will have to file a schedule to start services  once it receives the permit.
07/09/13 Aneesh Phadnis/Business Standard
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