Wednesday, July 22, 2015

Small fleet and regulations hamper AirAsia India

Having belatedly taken the decision to fly into Delhi beginning May this year, AirAsia’s Tony Fernandes is a happy man – to a certain extent.
Delhi has been a fantastic experience,” he told the Wall Street Journal. “It’s profitable.”
The Indian capital was not in AirAsia’s flight plans when it first launched its Indian associate airline in 2013. Neither was Mumbai.
At the time, Fernandes, noting that other Indian carriers were increasing fares, said that his key goal was to offer low fares. He claimed that this could be achieved by avoiding the destinations such as Mumbai and Delhi, which have relatively high airport costs, and by focusing on developing new traffic to tap potential air travel demand in southern India.
The unexpected profitability of the Delhi route, however, has not encouraged large-scale expansion plans in India.
22/07/15 FMT Reporters/FMT news
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