AirAsia India takes to the skies

AirAsia India has begun operations from 12 June with a daily Bangalore Int’l to Goa service which will be followed by a double-daily Bangalore Int’l to Chennai service will follow on 19 July.


AirAsia India takes to the skies


AirAsia India has begun operations from 12 June with a daily Bangalore Int’l to Goa service which will be followed by a double-daily Bangalore Int’l to Chennai service will follow on 19 July. This is the first foreign direct investment (FDI) by a foreign carrier after the government relaxed ownership rules, allowing foreign carriers to hold 49 per cent stake in a domestic airline. The airline is a joint venture with Malaysia’s AirAsia Berhad holding 49 per cent of the airline, Tata Sons holding 30 per cent and Telestra Tradeplace taking up the remaining 21 per cent stake.

India’s newest carrier operates a fleet of two A320-200s (with ten on order) with the world’s lowest unit cost of 2.1¢ US/available seat kilometre and a passenger break-even load factor of 52 per cent. It will hedge 100 per cent of its fuel requirements for the next three years and plans to achieve an aircraft turnaround time of 25 minutes. The joint venture also marks Tata’s return to the aviation industry after 60 years when the Indian government nationalised Tata Airlines, which is now Air India, in 1953.