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CHENNAI: In a move that is likely to trigger price
war in the aviation industry, new low cost airliner
AirAsia India today said its maiden flight on
Bangalore-Goa route on June 12 will cost just Rs 990
including taxes.
The airline will open the bookings this evening on its
website, AirAsia India CEO Mittu Chandilya said.
"Our collective goal is that every Indian should have
an opportunity to fly. We have our plane parked
here already", he told reporters here.
Earlier, Chandilya had told PTI that the airlines' fares
will be about 35 per cent lower than the current
market rates.
"June 12 would be the first flight. It will be A320
(aircraft). The timing of the flight will be around
3pm from Bangalore to Goa, and then back from
there (Goa) around 6'0 clock," Chandilya said, adding
that the airline is not looking at operating from
Delhi and Mumbai for now.
AirAsia India, a joint venture between Malaysian
carrier AirAsia, Tata Sons, and Arun Bhatia's Telestra
Tradeplace, was granted flying licence by aviation
regulator DGCA earlier this month after 9-month-
long wait and various legal hurdles.
In anticipation of the airline's entry into the Indian
market, no-frill airlines such as SpiceJet and IndiGo
have forced all other carriers to offer discounted
fares over the past few months.
AirAsia India's offer of Rs 990 including taxes is
likely to now force other carriers to review fares on
this sector on the same day, which now cost around
Rs 5,000 one-way.
"AirAsia will be opening up the bookings this
evening. By 9.30 pm our fares will be up there on
our website. Our first route will be from Bangalore
to Goa and Goa to Bangalore. We are very excited
about that," Chandilya said.
To a query, on the airline total load factor, he said:
"I would love to have 100 per cent load factor. But
60 per cent will be reasonable. For the fare we are
going with Bangalore-Goa. It will be Rs 990 inclusive
of taxes," he said.
Asked about other airlines mulling reduction in
airfares, he said: "Frankly, my view on that is it will
help companies to rationalise costs. That is the way,
I look at it."
On the expansion plans, he said the airline during
the current financial year would connect 10 cities
across the country with 10 aircraft.
"We have a plan. Our hope is that in this financial
year we will probably add about 10 cities. For that
we will have about 10 aircraft. Turnaround time will
be anywhere between 25 minutes and 35 minutes,"
he said.
Declining to reveal the name of the cities, Chandilya
said that at this point of time the company would
not look at entering Mumbai and New Delhi.
On investments made for India operations, Chandilya
declined to reveal any figures but said the major
investments were made on its employees.
"Investments what we made are our employees. We
have around 300 employees now. I think we will
manage our financials. We have enough cash to do
what we need", he said.
On reaching breakeven, he said: "I really want to
breakeven within four months. I have already said
this some time back. I don't want to change that
stance."
Responding to a query on the domestic aviation
industry, he said, "I think, the (aviation)
infrastructure is the biggest constraint. Previous
(Manmohan Singh government) administration
decided to have 15 low cost airports. For us we need
more airports and longer runways for the A320s."
To a query on whether it was "concern" for AirAsia
as the new Aviation Minister was looking to review
the aviation policy and other initiatives taken by
previous government, he said that "it is not a
concern. He can review all the operating licenses. I
am not worried about that.
"I am really bullish about India. It is right time to
comer. We, as an airliner hoping to change the
aviation industry".
On why it chose to launch service between
Bangalore-Goa despite having its base in Chennai,
Chandilya said the State governments were very
supportive of the airliner and Karnataka was "more
happy to have us".
He said AirAsia would have its base both out of
Chennai, Bangalore.
Chandilya clarified that the aircraft will not have
specific business class or section like other airline
operators but will have "hot-seats" spread across
the aircraft offering more legroom and comforts.
"Yes it will be costing little bit more (than the
regular fares," he said.
war in the aviation industry, new low cost airliner
AirAsia India today said its maiden flight on
Bangalore-Goa route on June 12 will cost just Rs 990
including taxes.
The airline will open the bookings this evening on its
website, AirAsia India CEO Mittu Chandilya said.
"Our collective goal is that every Indian should have
an opportunity to fly. We have our plane parked
here already", he told reporters here.
Earlier, Chandilya had told PTI that the airlines' fares
will be about 35 per cent lower than the current
market rates.
"June 12 would be the first flight. It will be A320
(aircraft). The timing of the flight will be around
3pm from Bangalore to Goa, and then back from
there (Goa) around 6'0 clock," Chandilya said, adding
that the airline is not looking at operating from
Delhi and Mumbai for now.
AirAsia India, a joint venture between Malaysian
carrier AirAsia, Tata Sons, and Arun Bhatia's Telestra
Tradeplace, was granted flying licence by aviation
regulator DGCA earlier this month after 9-month-
long wait and various legal hurdles.
In anticipation of the airline's entry into the Indian
market, no-frill airlines such as SpiceJet and IndiGo
have forced all other carriers to offer discounted
fares over the past few months.
AirAsia India's offer of Rs 990 including taxes is
likely to now force other carriers to review fares on
this sector on the same day, which now cost around
Rs 5,000 one-way.
"AirAsia will be opening up the bookings this
evening. By 9.30 pm our fares will be up there on
our website. Our first route will be from Bangalore
to Goa and Goa to Bangalore. We are very excited
about that," Chandilya said.
To a query, on the airline total load factor, he said:
"I would love to have 100 per cent load factor. But
60 per cent will be reasonable. For the fare we are
going with Bangalore-Goa. It will be Rs 990 inclusive
of taxes," he said.
Asked about other airlines mulling reduction in
airfares, he said: "Frankly, my view on that is it will
help companies to rationalise costs. That is the way,
I look at it."
On the expansion plans, he said the airline during
the current financial year would connect 10 cities
across the country with 10 aircraft.
"We have a plan. Our hope is that in this financial
year we will probably add about 10 cities. For that
we will have about 10 aircraft. Turnaround time will
be anywhere between 25 minutes and 35 minutes,"
he said.
Declining to reveal the name of the cities, Chandilya
said that at this point of time the company would
not look at entering Mumbai and New Delhi.
On investments made for India operations, Chandilya
declined to reveal any figures but said the major
investments were made on its employees.
"Investments what we made are our employees. We
have around 300 employees now. I think we will
manage our financials. We have enough cash to do
what we need", he said.
On reaching breakeven, he said: "I really want to
breakeven within four months. I have already said
this some time back. I don't want to change that
stance."
Responding to a query on the domestic aviation
industry, he said, "I think, the (aviation)
infrastructure is the biggest constraint. Previous
(Manmohan Singh government) administration
decided to have 15 low cost airports. For us we need
more airports and longer runways for the A320s."
To a query on whether it was "concern" for AirAsia
as the new Aviation Minister was looking to review
the aviation policy and other initiatives taken by
previous government, he said that "it is not a
concern. He can review all the operating licenses. I
am not worried about that.
"I am really bullish about India. It is right time to
comer. We, as an airliner hoping to change the
aviation industry".
On why it chose to launch service between
Bangalore-Goa despite having its base in Chennai,
Chandilya said the State governments were very
supportive of the airliner and Karnataka was "more
happy to have us".
He said AirAsia would have its base both out of
Chennai, Bangalore.
Chandilya clarified that the aircraft will not have
specific business class or section like other airline
operators but will have "hot-seats" spread across
the aircraft offering more legroom and comforts.
"Yes it will be costing little bit more (than the
regular fares," he said.
