Sir Richard Branson, chief of British airline Virgin Atlantic, once famously quipped that the easiest way to become a millionaire is to start out as a billionaire and invest in an airline. In India, the last decade has seen many noteworthy airlines perish as the domestic aviation sector has become synonymous with high operational costs and cut-throat competition, resulting in huge losses. It is only natural then, that a smooth take off in the Indian market eluded even Asia’s largest low-cost carrier (LCC), AirAsia, which flew its maiden flight in the country—amid much fanfare and expectations—a year ago.
From legal battles to regulatory hurdles, the airline’s India operations were fraught with stumbling blocks right from the outset. “We’ve definitely faced challenges in getting started in India,” says AirAsia Group CEO Tony Fernandes, in an email interaction with Forbes India. Fernandes—who is credited with scripting a unique low-cost business model that has grown AirAsia’s annual passenger traffic from 200,000 in the early 2000s to 45.6 million in 2014—has said in the past that India’s aviation industry was “hostile” towards his airline’s foray into the country.
08/07/15 Anshul Dhamija/Forbes India
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From legal battles to regulatory hurdles, the airline’s India operations were fraught with stumbling blocks right from the outset. “We’ve definitely faced challenges in getting started in India,” says AirAsia Group CEO Tony Fernandes, in an email interaction with Forbes India. Fernandes—who is credited with scripting a unique low-cost business model that has grown AirAsia’s annual passenger traffic from 200,000 in the early 2000s to 45.6 million in 2014—has said in the past that India’s aviation industry was “hostile” towards his airline’s foray into the country.
08/07/15 Anshul Dhamija/Forbes India
