New Delhi: AirAsia India has halted its expansion plans after just a year in business as it waits for a government decision on whether to change a protectionist measure regulating overseas flights, the budget carrier's chief executive said.
The airline, part-owned by Malaysia's AirAsia Bhd, has carved out a 1 percent share of a market enjoying double-digit annual growth in passenger numbers. But it has been losing money because of high operating costs and frequent price wars with rivals such as IndiGo Airlines.
The carrier planned to bring in a plane a month from March to build a fleet of at least 10 jets by the end of the year. That would allow it to ply dozens of less-competitive routes to small Indian cities, before starting flights overseas that connect passengers with AirAsia's networks across Asia.
26/06/15 Reuters
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The airline, part-owned by Malaysia's AirAsia Bhd, has carved out a 1 percent share of a market enjoying double-digit annual growth in passenger numbers. But it has been losing money because of high operating costs and frequent price wars with rivals such as IndiGo Airlines.
The carrier planned to bring in a plane a month from March to build a fleet of at least 10 jets by the end of the year. That would allow it to ply dozens of less-competitive routes to small Indian cities, before starting flights overseas that connect passengers with AirAsia's networks across Asia.
26/06/15 Reuters
