Even as the Indian aviation industry reels under a heavy debt burden, the impending entry of low-cost carrier AirAsia is set to add further to its woes. But that is not adding to the concerns of Tony Fernandes, CEO of the carrier that is known to shake up markets upon its arrival. In an interview with Business Standard, Fernandes said the company’s plans were clearly outlined. “A lot of virgin routes, create new traffic flows. Our fares will be aggressive and will stimulate the market.” AirAsia India recently took delivery of its first Airbus A320 180-seater aircraft and has permission to secure nine more even as the carrier awaits final clearance from the government. Also read: AirAsia's 1st Airbus A320 from France arrives in Chennai The CEO of the low-cost carrier also set tongues wagging after he admitted there would likely be cannibalization of business between the AirAsia and the full-service venture between Tata and Singapore Airlines. Tata Sons holds 30 percent in AirAsia India. “That is for the Tatas to sort out,” he told the newspaper in a marked shift from his earlier stance when he had, during the launch announcement said that AirAsia India and Tata-SIA were “two very separate businesses”. Unlike developed countries, there is often very little difference between the fares of low-cost carriers and full-service airlines in price-sensitive markets such as India.
25/03/14 Moneycontrol.com
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25/03/14 Moneycontrol.com
