When India opened its ailing aviation sector to foreign airlines last September, not many thought the sector, which is reeling under heavy losses, would attract foreign investment.
A few months down the line and AirAsia, a successful budget carrier based in Malaysia, has tied up with Indian conglomerate the Tata Group and another Indian investor to set up a new airline called AirAsia India. This has ignited hope in an industry, which despite seeing a huge growth in passenger numbers is suffering due to over-regulation and intense price competition.
"Having a foreign carrier such as AirAsia come in, is a good sign," Binit Somaia, South Asia director at the Centre for Aviation (CAPA) said. "They have experience, expertise, good management - all of that - if they bring it into the country, it helps lift the entire industry."
12/03/13 Rajeshni Naidu-Ghelani/CNBC