Due to the extremely competitive fare structures offered by bus operators and Indian Railways, AirAsia is making losses on its Bangalore-Chennai run. However, on the other four routes that it operates, it is making a profit. This was disclosed by Mittu Chandilya, CEO of AirAsia, on the sidelines of the SITA India Aviation Forum recently.
AirAsia, the low cost, no frills carrier, has two flights daily from Bangalore to Goa and covers Cochin, Jaipur and Chandigarh, and all these routes are in profit. Air Asia expects to announce two new routes and the service is expected to begin in November.
According to Mittu Chandilya, they plan to induct 10 more aircraft next year, taking the total fleet to 15, it currently operates 2 Airbus A-320s. Originally, they had planned to cover only tier II and tier III towns and cities, but due to intense competition, they may break ground to cover wider territory. New Delhi is most likely to be the next airport they will look to cover. Details are expected shortly.
While IndiGo has been making waves this year, they have already declared a profit for the year ending March 2014, which is the 6th continuous year of profits. They have plans to embark on a mammoth expansion plan, thanks to the $ 2.6 billion finance from the Industrial and Commercial Bank of China, for purchasing 30 aircraft.
30/10/14 AK Ramdas/moneylife.com
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AirAsia, the low cost, no frills carrier, has two flights daily from Bangalore to Goa and covers Cochin, Jaipur and Chandigarh, and all these routes are in profit. Air Asia expects to announce two new routes and the service is expected to begin in November.
According to Mittu Chandilya, they plan to induct 10 more aircraft next year, taking the total fleet to 15, it currently operates 2 Airbus A-320s. Originally, they had planned to cover only tier II and tier III towns and cities, but due to intense competition, they may break ground to cover wider territory. New Delhi is most likely to be the next airport they will look to cover. Details are expected shortly.
While IndiGo has been making waves this year, they have already declared a profit for the year ending March 2014, which is the 6th continuous year of profits. They have plans to embark on a mammoth expansion plan, thanks to the $ 2.6 billion finance from the Industrial and Commercial Bank of China, for purchasing 30 aircraft.
30/10/14 AK Ramdas/moneylife.com
