Mumbai: Low-cost carrier AirAsia India's proposed plans to enter the country's metro segment may delay the break-even of the company, say industry experts.
The airline that recently started its domestic operations in India has been denying any interest in entering the metros, especially Mumbai and Delhi, owing to higher operational costs and high airport taxes. Industry experts said that AirAsia chief Tony Fernandes's announcement did not come as a surprise. However, the airline may take longer to achieve break-even, given the higher costs.
According to Kapil Kaul, CEO, South Asia for Center of Asia Pacific of Aviation (Capa), "Change of plans are on expected lines as Capa had indicated in our April industry report that Delhi/ Mumbai will be on AirAsia India's plans. So, not surprised. Don't see the airline break-even in FY15 and possibly in FY16." AirAsia chief on Thursday announced on a micro-blogging website that the airline is looking to enter Mumbai very soon. "In Incredible India, Bombay is changing by the day. AirAsia India will be starting in this metro soon. We are coming," he tweeted.
27/09/14 Yuga Chaudhari/Daily News & Analysis
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The airline that recently started its domestic operations in India has been denying any interest in entering the metros, especially Mumbai and Delhi, owing to higher operational costs and high airport taxes. Industry experts said that AirAsia chief Tony Fernandes's announcement did not come as a surprise. However, the airline may take longer to achieve break-even, given the higher costs.
According to Kapil Kaul, CEO, South Asia for Center of Asia Pacific of Aviation (Capa), "Change of plans are on expected lines as Capa had indicated in our April industry report that Delhi/ Mumbai will be on AirAsia India's plans. So, not surprised. Don't see the airline break-even in FY15 and possibly in FY16." AirAsia chief on Thursday announced on a micro-blogging website that the airline is looking to enter Mumbai very soon. "In Incredible India, Bombay is changing by the day. AirAsia India will be starting in this metro soon. We are coming," he tweeted.
27/09/14 Yuga Chaudhari/Daily News & Analysis
