Malaysia-based AirAsia, the largest budget airline in Asia, will begin flights to India from December 1, its chief executive officer Tony Fernandes said Monday. He said it will begin flying into the southern city of Thiruchi before spreading to nine other locations
"I anticipate very high load factor for this flight. (Probably) about 90 percent from the first week, which should probably be the strongest route we have ever done," Fernandes said, according to Malaysia's state Bernama news agency. He said the carrier expected the huge growth in Indian tourist arrivals to contribute to its new route and will spend up to 7 million ringgit (2 million dollars) for new infrastructure in Thiruchi.
The carrier aims to offer services into other cities including Madras, Cochin, Madurai and Kovaibutore, within the next one-and-a-half years. Its long-haul arm, AirAsia X will be looking to fly to New Delhi, Mumbai and Hydrabad, Fernandes said. Booking for the Thiruchi flights will begin on Thursday with an offer price of 49 ringgit (13.50 dollars) as part of the launch. The average price for a one-way ticket will be 200 ringgit. AirAsia will be using 10 of its Airbus A320 single-aisle planes for the Indian flights.
The carrier has been bullish despite a global economic slowdown but its net profit plummeted 95 percent in the second quarter due to high fuel costs and foreign exchange losses. The airline last month said it is exploring "various options", following news reports that it may soon be privatised in view of the economic slowdown.
AirAsia's controlling shareholder is Tune Air Sdn Bhd, which held 30.7 percent of its shares as at end-March this year. Tune Air's shareholders are Fernandes himself and his deputy, Kamarudin Meranun. The company, launched in December 2001 with just two aircraft, has become the region's biggest low-cost carrier and has been imitated by national carriers and other low-fare start-ups.
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