AirAsia India likely to start operations in May this year

AirAsia is likely to begin its operations in India in May this year. “We may get the Air Operator Permit (AOP) in about three weeks. Thereafter, we may commence operations in two months from Chennai,” said Mittu Chandilya, CEO, AirAsia India. “Our model is based on low fares. The fares could be 25-30 per cent less [than others]. We will make sure we deliver not just for a month but sustain it throughout the year,” he said in an interview to The Hindu on Wednesday.

The Federation of Indian Airlines (FIA) has opposed the entry of Air Asia stating this may force other airlines to run into further loss. Though FIA’s request seems to have no effect on DGCA’s decision to grant AirAsia India the required permit subject to submission of some more documentation.

In a joint venture with Tata Sons Ltd and Arun Bhatia of Telestra Tradeplace Pvt. Ltd, AirAsia India got approval for a USD 30-million deal from the Foreign Investment Promotion Board, last April, and a no-objection certificate from the Ministry of Civil Aviation last September.