AirAsia India to break even by December 2014
With other airlines in India have been bogged down by high operation costs, low fares and competition, AirAsia India hopes to break even after just one year of operations.
This notable achievement has been confirmed by Group CEO Tan Sri Tony Fernandes and is a significant achievement considering other AirAsia affiliates in Malaysia, Indonesia and Thailand took an average of two years to break even.
It was on 19th February 2013 that AirAsia announced plans for an Indian airline via a tripartite association with Tata Sons and Arun Bhatia, a private investor and owner of Testra Tradeplace. This union came into effect after India opened foreign carriers to acquire stakes in Indian counterparts.
In June 2014, AirAsia India added two new routes connecting Bangalore to Chennai and Goa. The company plans on adding six more aircrafts to their current fleet by the end of this year and while the original plan was to operate to 9 cities by the end of this year, the revised plan is for 13 cities including North and North East regions.
International flights are also on the cards to regions such as Gulf, Africa, Maldives and South East Asia. However, these rules are subject to the Government of India revising the existing 5/20 rule allowing Indian airlines to fly abroad only after a total of 5 years in operations and having a minimum of 20 aircrafts in their fleet.