AirAsia India

AirAsia India
IATA ICAO Callsign
I5 IAD ARIYA
Founded 28 March 2013 (2013-03-28)
Commenced operations 12 June 2014 (2014-06-12)
Hubs Kempegowda International Airport
Secondary hubs Indira Gandhi International Airport
Fleet size 6
Destinations 10
Company slogan Now Everyone Can Fly
Headquarters Chennai, India[1]
Key people
Website www.airasia.com/in

AirAsia India is an Indo-Malaysian low cost carrier headquartered in Chennai, India. The airline is a joint venture with AirAsia Berhad holding 49% stake in the airline, Tata Sons holding 40.06% and Arun Bhatia holding the remaining 10% through his company, Telestra Tradeplace. Air Asia India commenced operations on 12 June 2014 with Bangalore as its primary hub.

AirAsia is the first foreign airline to set up a subsidiary in India and the company marked Tata's return to aviation industry after 60 years, having ceded Air India in 1946. As of February 2016, AirAsia India is the third largest low cost carrier in India, after IndiGo and SpiceJet with a market share of 2.2%.

History

In February 2013, with the Indian government allowing a foreign direct investment of up to 49% in airlines, AirAsia Berhad applied to the Indian Foreign Investment Promotion Board (FIPB) seeking approval for commencing its operations in India.[2][3] In March 2013, AirAsia announced that it would establish a joint venture with Tata Sons and Telestra Tradeplace with Tata Sons representing the airline with two non-executive directors in the board.[4][5][6] The airliner planned to operate with the world's lowest unit cost of ₹1.25 (1.9¢ US) per available seat Kilometre and a passenger break-even load factor of 52%. It also planned to hedge 100% of its fuel requirements for the first three years and to achieve an aircraft turnaround time of 25 minutes.[7]

AirAsia planned to begin operations to various tier 2 and tier 3 cities with Chennai International Airport as its main operating base.[8] According to KPMG, the introduction of AirAsia was expected to cause another price war, ultimately leading to an increase in air traffic and some consolidation in the Indian aviation sector.[9] AirAsia initially invested an amount of US$50 million and in preparation for its operations in India, it struck deals with online and offline travel agents.[10][11] On 3 March 2013, the FIPB officially permitted AirAsia to rent or lease aircraft and to carry cargo on its scheduled flights. The airline then applied for a permission to schedule aircraft and transport passengers,[12] which the FIPB accepted on 6 March.[13]

AirAsia India was established on 28 March 2013 and became the first foreign airline to set up a subsidiary in India.[14] [15] In April, the airline started recruiting candidates for pilots and cabin crew.[16] As the final procedure to obtain Air Operator Permit, a proving flight was conducted on 1 and 2 May 2014 flying from Chennai to Kochi, Bangalore and Kolkata.[17] On 7 May 2014, the DGCA issued an Air Operator Permit to the company.[18] On 30 May 2014, the airline announced shifting of its base to Bangalore and its first flight from there to Goa.[19] AirAsia operated its maiden flight on 12 June 2014.[20][21] In June 2015, the airline made Indira Gandhi International Airport, Delhi its secondary hub for North Indian operations.[22] In August 2015, Tata Sons increased its stake to 40.06% from 30% earlier by injecting fresh equity while Telestra's share was reduced to 10% from 20%.[23][24] As of February 2016, AirAsia India is the third largest low cost carrier in India after IndiGo and SpiceJet, with a market share of 2.2%.[25]

Corporate affairs

AirAsia India is headquartered in Chennai, India.[1] Prior to the airline's formation, Tony Fernandes, founder of AirAsia group, announced that he would like Ratan Tata to be the chairman of the airline; however the latter refused, though he later consented to being the chief advisor to the AirAsia India management board.[26][27] On 15 May 2013, AirAsia India appointed management consultant Mittu Chandilya as CEO.[28] A month later, on 17 June, S. Ramadorai, the non-executive vice-chairman of Tata Consultancy Services, was appointed as the chairman of the airline.[29]

Destinations

AirAsia India currently operates in following destinations in India.[30]

Country (State) City Airport Begin End Ref
India (Andhra Pradesh) Visakhapatnam Visakhapatnam Airport 18 June 2015 present [31]
India (Assam) Guwahati Lokpriya Gopinath Bordoloi International Airport 21 May 2015 present [32]
India (Chandigarh) Chandigarh Chandigarh Airport 5 September 2014 present [33]
India (Delhi) Delhi Indira Gandhi International AirportHub 21 May 2015 present [32]
India (Goa) Goa Goa International Airport 12 June 2014 present [21]
India (Karnataka) Bengaluru Kempegowda International AirportHub 12 June 2014 present [21]
India (Kerala) Kochi Cochin International Airport 20 June 2014 present [34]
India (Maharashtra) Pune Pune Airport 18 December 2014 present [35]
India (Manipur) Imphal Imphal International Airport 25 June 2015 present [36]
India (Rajasthan) Jaipur Jaipur International Airport 5 September 2014 present [33]
India (Tamil Nadu) Chennai Chennai International Airport 19 June 2014 2 April 2015 [37]

Fleet

The airline's first Airbus A320-200 was delivered from the Airbus factory in Toulouse, France to Chennai International Airport on 22 March 2014. They have received in-principle approval to import ten A320-200 aircraft.[38][39] On 21 March 2015, AirAsia India unveiled its fourth aircraft with a livery dedicated to aviation pioneer JRD Tata and the aircraft was christened as The Pioneer.[40] The sixth aircraft in the fleet joined in November and was registered as VT-APJ in honour of APJ Abdul Kalam, former President of India.[41]

AirAsia India fleet
Aircraft In service Orders Options Passengers
(economy)		 Notes
Airbus A320-200 6 1 180
Total 6 1

References

  1. 1 2 "AirAsia India shifts base to Bengaluru from Chennai". Times of India. 30 May 2014. Retrieved 25 March 2016.
  2. ↑ "AirAsia India to take to the skies in Q4". MCIL Multimedia. Retrieved 21 February 2013.
  3. ↑ Kurlantzick, Joshua (23 December 2007). "Does Low Cost Mean High Risk?". The New York Times. Retrieved 28 April 2010.
  4. ↑ "AirAsia to tie up with Tata Sons for new airline in India". Times of India. 21 February 2013. Retrieved 25 March 2016.
  5. ↑ "Tata Sons, Telestra Tradeplace and Air Asia to form Air Asia India". The Economic Times. 20 February 2013. Retrieved 25 March 2016.
  6. ↑ "AirAsia incorporates company for Indian venture". The Times of India (New Delhi). Press Trust of India. 31 March 2013. Retrieved 31 March 2013.
  7. ↑ "Passengers' perceptions of low cost airlines and full service carriers". Cranfield University. 2005. Retrieved 25 March 2016.
  8. ↑ "Tatas plan return flight with AirAsia on board". NDTV. Retrieved 21 February 2013.
  9. ↑ "AirAsia's India foray good news; see more competition: KPMG". CNBC. 21 February 2013. Retrieved 25 March 2016.
  10. ↑ "FIPB approves AirAsia-Tata plan". The Hindu. 6 March 2013. Retrieved 30 April 2016.
  11. ↑ "Air Asia to make strong sales pitch, ties up with portals, agents". Business Standard. 23 February 2013. Retrieved 25 March 2016.
  12. ↑ "Air Asia, Tata Group JV seeks permission for aircraft leasing". Indian Express. 3 March 2013. Retrieved 25 March 2016.
  13. ↑ "AirAsia's India investment plan gets FIPB nod". Reuters. 6 March 2013. Retrieved 25 March 2016.
  14. ↑ "AirAsia incorporates Indian venture; files all papers with MCA". The Economic Times. 3 April 2013. Retrieved 25 March 2016.
  15. ↑ "FIPB to take up AirAsia India entry proposal on March 6". The Hindu Business Line. 22 February 2013. Retrieved 25 March 2016.
  16. ↑ "AirAsia recruitment drive for India gets overwhelming response". The Economic Times. 14 April 2013. Retrieved 25 March 2016.
  17. ↑ "AirAsia India Proving Flights: Day 2". The Flying Engineer. 2 May 2015. Retrieved 2 July 2015.
  18. ↑ "AirAsia India gets approval to fly". BBC News. 8 May 2014. Retrieved 21 May 2014.
  19. ↑ "AirAsia India launches and shifts base to Bengaluru". anna.aero. 18 June 2014. Retrieved 5 September 2014.
  20. ↑ "AirAsia India Tickets on sale from today". NDTV. 30 May 2014. Retrieved 30 May 2014.
  21. 1 2 3 "AirAsia India announces maiden flight from Bangalore to Goa for Rs 990". IBNLive. 30 May 2014. Retrieved 2 July 2015.
  22. ↑ "AirAsia looking for a third hub after Delhi". The Economic Times. 21 May 2015. Retrieved 8 March 2016.
  23. ↑ "ATata Sons increase AirAsia India stake to 41%". The Economic Times. 18 August 2015. Retrieved 25 March 2016.
  24. ↑ "tata-group-ramps-up-stake-in-airasia-india". Ch-aviation. 18 August 2015. Retrieved 8 March 2016.
  25. ↑ "India's domestic passenger demand up 25 percent: IATA". Business Standard. 6 April 2014. Retrieved 14 April 2016.
  26. ↑ "AirAsia wants Ratan Tata to head JV". The Economic Times. 24 February 2013. Retrieved 25 March 2016.
  27. ↑ "Ratan Tata to be the chief advisor to AirAsia India". The Economic Times. 17 June 2013. Retrieved 2 July 2015.
  28. ↑ "Singapore based Mittu Chandilya appointed CEO of Air Asia India". The Economic Times. 15 May 2013. Retrieved 2 July 2015.
  29. ↑ "AirAsia India appoints TCS' S Ramadorai as Chairman". The Economic Times. 17 June 2013. Retrieved 2 July 2015.
  30. ↑ "Destinantions, Air Asia". Air Asia. Retrieved 8 March 2016.
  31. ↑ "AirAsia India to start Bangalore-Visakhapatnam service from 18 June 2015". AirAsia India. 8 March 2016. Retrieved 25 March 2016.
  32. 1 2 "AirAsia India set to launch flights from New Delhi". Business Standard. 20 April 2015. Retrieved 20 April 2015.
  33. 1 2 "Air Asia adds Jaipur and Chandigarh". Air Asia (Press release). 24 July 2014. Retrieved 8 March 2016.
  34. ↑ "Air Asia announces Kochi flights". NDTV. 17 June 2014. Retrieved 8 March 2016.
  35. ↑ "Airasia India launches services to Pune". New Indian Express. 18 December 2014. Retrieved 8 March 2016.
  36. ↑ "AirAsia Adds Another New Route, Fares Start At Rs. 1/Km". NDTV. 3 June 2015. Retrieved 8 March 2016.
  37. ↑ "Losses force Air Asia to terminate its first route". News Hub. 2 April 2015. Retrieved 3 April 2015.
  38. ↑ "Air Asia's 1st Airbus A320 from France arrives in Chennai". CNBC-TV18. 22 March 2014. Retrieved 8 March 2016.
  39. ↑ "Air Asia India’s first Airbus A320 arrives in Chennai". The Hindu. 22 March 2014. Retrieved 8 March 2016.
  40. ↑ "AirAsia India Unveils Aircraft With JRD Tata Livery". NDTV. 12 March 2015. Retrieved 2 July 2015.
  41. ↑ "As a Tata company, we have done things the ethical way, says AirAsia MD & CEO Mittu Chandilya". The Economic Times. 28 August 2015. Retrieved 8 March 2016.

External links

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