Bangalore: Low-cost airline AirAsia India, in which the Tata Group’s holding company owns substantial stake, has said it is sticking to its target of achieving overall profits in October as it has already started posting operating profits.
A report by the Centre for Asia Pacific Aviation (CAPA) had earlier said that the airline had posted losses of ?26 crore for the first 18 days of its operations. But AirAsia India’s CEO Mittu Chandilya disagreed with the report, calling it “inaccurate”.
“We are very much within our targeted range of achieving (overall) profits. Our promotional seats have takers and are bringing in volumes,” Chandilya told BusinessLine. The company launched its first flight from Bangalore to Goa with promotional fares at below ?1,000.
Chandilya said that the large majority of the airline group’s reported quarterly net loss was attributed to the necessary start-up costs involved in getting approvals and permit licences from national regulators, like the DGCA in India. So viewing or projecting AirAsia India’s quarterly net loss of 13.8 million Malaysian Ringgit (roughly ?26 crore) in isolation, Chandilya said, “would be a misrepresentation of the financial performance of AirAsia India and, consequently, of AirAsia.”
31/08/14 Business Line
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A report by the Centre for Asia Pacific Aviation (CAPA) had earlier said that the airline had posted losses of ?26 crore for the first 18 days of its operations. But AirAsia India’s CEO Mittu Chandilya disagreed with the report, calling it “inaccurate”.
“We are very much within our targeted range of achieving (overall) profits. Our promotional seats have takers and are bringing in volumes,” Chandilya told BusinessLine. The company launched its first flight from Bangalore to Goa with promotional fares at below ?1,000.
Chandilya said that the large majority of the airline group’s reported quarterly net loss was attributed to the necessary start-up costs involved in getting approvals and permit licences from national regulators, like the DGCA in India. So viewing or projecting AirAsia India’s quarterly net loss of 13.8 million Malaysian Ringgit (roughly ?26 crore) in isolation, Chandilya said, “would be a misrepresentation of the financial performance of AirAsia India and, consequently, of AirAsia.”
31/08/14 Business Line
