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AirAsia India


AirAsia India

AirAsia India
Founded 28 March 2013 (2013-03-28)
Commenced operations 12 June 2014 (2014-06-12)
Operating bases
Secondary hubs
Frequent-flyer program BIG
Fleet size 2 (+20 on order)
Destinations 7
Company slogan Now Everyone Can Fly
Parent company
  • AirAsia Berhad (49%)
  • Tata Group (30%)
  • Telestra Tradeplace (21%)
Headquarters Bangalore, India.[1]
Key people

AirAsia India[2] is an Indo-Malaysian low cost carrier.[3] Announced on 19 February 2013, the airline is a joint venture with Air Asia Berhad holding 49% of the airline, Tata Sons holding 30% and Telestra Tradeplace taking up the remaining 21% in the airline. The joint venture would also mark Tata's return to aviation industry after 60 years.[4][5] Air Asia India commenced operations on 12 June 2014.[6]

AirAsia is the first foreign airline to set up a subsidiary in India.[7] The airliner will operate with the world's lowest unit cost of 1.25 (2.0¢ US)/available seat kilometer and a passenger break-even load factor of 52%. It will hedge 100% of its fuel requirements for the next three years and plans to achieve an aircraft turnaround time of 25 minutes.[8]


  • History 1
  • Management 2
  • Destinations 3
  • Fleet 4
  • References 5
  • External links 6


The origins of the airline can be tracked back to October 2012, when AirAsia was keen to open operations based out of India provided the aviation environment and tax structure were conducive and friendly for low-cost airline operations. With the Indian government allowing a foreign direct investment of up to 49%, in February 2013, AirAsia applied to the Indian Foreign Investment Promotion Board (FIPB) to seek approval for commencing its operations in India.[9] AirAsia announced that it would establish a joint venture with Tata Sons and Telestra Tradeplace. Tata sons would represent the airline with two non-executive directors in the airline's board. AirAsia initially planned to begin operations to various tier 2 and tier 3 cities with Chennai International Airport as its main operating base[10] but later shifted its base to Bengaluru, operating its first flight from Bengaluru to Goa.[11] 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.[12]

AirAsia initially invested an amount of US$50 million in the airline. In preparation for its operations in India, AirAsia struck deals with online and offline travel agents throughout the country. Previously, limited distribution of sales had affected the airline's performance in India and AirAsia wanted to avoid that with its Indian subsidiary by all means.[13] On 3 March 2013, the FIPB officially permitted AirAsia to rent/lease aircraft and to carry cargo on its scheduled flights. The airline then applied for a permission to schedule aircraft and transport passengers,[14] which the FIPB accepted on 6 March.[15] Less than two months after AirAsia announced its plans to start an airline in India, the joint venture was established on 28 March 2013 as AirAsia (India) Pvt. Ltd.[16] In April, the airline started recruiting candidates for their cabin crew, and allowed captains and first officers to apply online for an interview in Bangalore.[17]

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.[18] On 8 May 2014, the DGCA issued AirAsia India an Air Operator Permit.[19]

On 30 May 2014, AirAsia India announced its maiden flight from Bangalore to Goa; the service started on 12 June. [20]


Prior to the airline's formation, Tony Fernandes 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.[21][22] On 15 May 2013, AirAsia India appointed management consultant Mittu Chandilya as CEO.[23] A month later, on 17 June, S. Ramadorai, the Non-Executive Vice Chairman of the Indian software firm Tata Consultancy Services, was appointed as the Chairman of the airline.[24]


AirAsia India currently operates in following destinations in India.


AirAsia India plans to operate a fleet of Airbus A320-200 aircraft. The airline will initially induct 2 to 3 A320s and quickly expand its fleet thereafter. By the end of CY 2014 and FY 2014-2015 AirAsia India will have 6 A320 and 14 A320 aircraft in its fleet respectively.[25] The airline's first Airbus A320-200, registered as VT-ATF, flying from the Airbus factory in Toulouse, France landed at Chennai International Airport on 22 March 2014. They have received in-principle approval to import 10 A320-200 aircraft.[26][27]


  1. ^ "AirAsia India shifts base to Bangalore from Chennai". Times of India. Retrieved 20 May 2014. 
  2. ^ "AirAsia incorporates company for Indian venture".  
  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. Retrieved 21 February 2013. 
  5. ^ "Tata Sons, Telestra Tradeplace and Air Asia to form Air Asia India". Economic Times (Press release). 20 February 2013. 
  6. ^ "AirAsia India Tickets on Sale From Today -". Retrieved 2014-05-30. 
  7. ^ "FIPB to take up AirAsia India entry proposal on March 6". The Hindu Business Line. Retrieved 22 February 2013. 
  8. ^ "Passengers' perceptions of low cost airlines and full service carriers". Cranfield University. 2005. 
  9. ^ "AirAsia India to take to the skies in Q4". MCIL Multimedia Sdn Bhd. Retrieved 21 February 2013. 
  10. ^ "Tatas plan return flight with AirAsia on board".  
  11. ^ "AirAsia India launches and shifts base to Bangalore". ANNA Aero. 18 June 2014. Retrieved 5 September 2014. 
  12. ^ "AirAsia's India foray good news; see more competition: KPMG". CNBC. Retrieved 21 February 2013. 
  13. ^ "Air Asia to make strong sales pitch, ties up with portals, agents". Business Standard. Retrieved 23 February 2013. 
  14. ^ "Air Asia, Tata Group JV seeks permission for aircraft leasing". The Indian Express. Retrieved 3 March 2013. 
  15. ^ "AirAsia's India investment plan gets FIPB nod". Reuters India. Retrieved 6 March 2013. 
  16. ^ "AirAsia incorporates Indian venture; files all papers with MCA". The Economic Times. Retrieved 3 April 2013. 
  17. ^ "AirAsia recruitment drive for India gets overwhelming response". The Economic Times. Retrieved 14 April 2013. 
  18. ^ AirAsia India Proving Flights
  19. ^ BBC News - AirAsia India gets approval to fly. (2014-05-08). Retrieved on 2014-05-21.
  20. ^ AirAsia India's maiden flight from Bangalore to Goa
  21. ^ "AirAsia wants Ratan Tata to head JV". The Economic Times. Retrieved 24 February 2013. 
  22. ^ Ratan Tata to be the chief advisor to AirAsia India
  23. ^ Singapore based Mittu Chandilya appointed CEO of Air Asia India
  24. ^ AirAsia India appoints TCS' S Ramadorai as Chairman
  25. ^ "AirAsia to invest up to $60 mn in airline venture with Tata". The Economic Times. Retrieved 21 February 2013. 
  26. ^ "Air Asia's 1st Airbus A320 from France arrives in Chennai".  
  27. ^ "Air Asia India’s first Airbus A320 arrives in Chennai".  

External links

Official website

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