AirAsia finally received its long-awaited approval to set up a joint-venture in India, a market which AirAsia founder Tony Fernandes has been looking at for at least five years…
KUALA LUMPUR- He dreamed it and he finally achieved it. For Malaysian aviation tycoon Tony Fernandes, India was always a market to be conquered. Above all because of the incredible potential that India represents today with its billion inhabitants and its quick developing middle class; but also for sentimental reasons as Fernandes carries Indian origins with his dad coming from Chennai.
Last week, the Indian government finally approved the joint venture announced last February between AirAsia Berhad and the powerful Indian conglomerate TATA but also with Telestra Tradeplace. “The application made by AirAsia through its investment arm, AirAsia Investment, to the Foreign Investment Promotion Board seeking approval for a 49 per cent investment into a joint venture company named AirAsia India, partnering Tata Sons and Arun Bathia of Telestra Tradeplace, has been granted a formal approval on April 4,” the Malaysian carrier said in a statement.
On April 5, AirAsia received formal approval from India Foreign Investment Promotion Board to launch the future AirAsia India Pvt. Ltd. “This approval will enable AirAsia India to apply with the Directorate General of Civil Aviation for the aviation licence to operate as an airline,” the statement added.
The approval comes as the government is looking at deregulating further the Indian aviation sector, especially following the dismissal of Kingfisher Airlines, once perceived as the symbol of India’s successful reform of its aviation market. AirAsia is indeed the first overseas airline to get approval to own up to 49% in a local airline venture, after rules were relaxed last September.
AirAsia is confident that it can replicate its unprecedented success across Malaysia, Thailand, Indonesia and other joint ventures. In particular, AirAsia believes its success in affording people to fly through superior operational performance by emphasizing a focused and disciplined cost structure will tremendously benefit the Indian consumer.
The airline started to look at recruiting flight attendants. It plans first to operate domestic routes –mostly to secondary destinations- out of Chennai. Currently, AirAsia through its operations based in Thailand and Malaysia already connect Chennai, Bangalore, Thiruchirapalli, Kochi and Kolkata to Asean and beyond through its Group’s operations.
AirAsia remains a pioneer of the low cost carrier model in Asia and is currently Asia’s largest LCC with 120 aircraft and over 350 orders. It has affiliates in Malaysia, Indonesia, Thailand, the Philippines, Japan as well as a long haul carrier AirAsia X.
Luc Citrinot a French national is a freelance journalist and consultant in tourism and air transport with over 20 years experience. Based in Paris and Bangkok, he works for various travel and air transport trade publications in Europe and Asia.
