AirAsia India plans to expand to 20 aircraft to fly abroad

The Dollar Business Bureau

Tata Sons and Malaysia’s AirAsia - owned AirAsia India has announced it would soon expand its fleet to 20 aircraft to meet the government’s conditions of flying abroad.

“We are at seven aircraft and want to get to 20 at the earliest. We are not going to stop at 20. The board has approved multiple millions of dollars for this growth,” said Amar Abrol, chief executive officer at AirAsia India.

Air Asia plans to induct its seventh aircraft by September this year.

It expects to serve more routes, connecting Bengaluru to Goa, Hyderabad and Guwahati. The company has been showing gross profit since April, primarily due to higher passenger loads on its key routes, Abrol said.

In June this year, the government liberalised its aviation policy which restricted an airline carrier from plying on international routes till they’d spent at least five years in the domestic market and owned a fleet of 20 aircraft.

AirAsia India has had turbulent times in the past since it started operations in 2014. Its competition with larger rivals in many routes had restricted its growth plans due to Indian civil aviation sector’s previous regulations.

“AirAsia India has secured multiple millions of dollars in fresh investment in the airline that could help expand fleet and run services into newer towns across India,” Abrol said.

"Our model is to create opportunity in routes that never existed. Only 70 million of India's 330 million fly and there is opportunity for everyone," said Abrol.

The company currently owns a 2.2% marketshare against domestic rivals such as Go Air, Indigo and Spicejet in the budget carrier segment and generates 10-12% of ticket bookings through promotional offers.