Air Asia India seems to have hit the ground running. The newest entrant in the Indian aviation space is making profits on four of the five routes it operates in the country, according to Mittu Chandilya, Chief Executive Officer.
Bangalore-Chennai is the carrier’s only loss-making route as it has to offer low fares amid high competition from other modes of transport.
“In this (Bangalore-Chennai) route, the competition is high from buses, trains and other carriers. This is telling on our pricing,” Chandilya told
Chandilya said his airline is on track to break even next year, when its six aircraft get inducted into service. Currently, the company operates with two Airbus A-320 aircraft. It expects to take delivery of its sixth aircraft by early next year.
AirAsia India, which is a three way joint venture between AirAsia, Tata Sons and Arun Bhatia’s Telestra TradePlace, is set to unveil two new routes next week. “We have a list of top 12 destinations that we wish to fly to and we keep looking at it regularly. We have begun work on two new routes and services should begin in a month,” Chandilya said.
Though he did not provide details, all indications are that the company will strengthen its network in the North while also entering western India. A recent news report had suggested that AirAsia has already sought space for operations from the airport in the national capital, which would mark a significant shift in its initial strategy of focusing on only tier-II and tier-III cities. Chandilya said this was because competition has started following the carrier on its new routes. “Now we have decided to take the fight to their (competitors) backyard…We are open to all routes in the country,” he added.