AirAsia India to Add More Fleet

AirAsia India Airbus A320-200

AirAsia India Airbus A320-200

AirAsia India has plans to expand its fleet of eight aircraft and increase 16-20 later. This was revealed by the head of Group AirAsia, Tony Fernandes, Brand week here in India.

AirAsia India, which has six Airbus A320-200 aircraft, is a joint venture in which AirAsia Bhd Malaysia owns 49 percent, Tata Sons Ltd 41 percent and Arun Bhatia of Telestra Tradeplace Pvt Ltd the rest.

Fernandes said the 5/20 rule, in which new entrants must have five years of experience in the domestic sector and a fleet of 20 aircraft before they can fly abroad, was complicated and laden industry. "Let the market decide and where routes to be subsidized, need to subsidize them. India is a vast country with a huge market and has enormous potential," he said.

Furthermore 5/20 rule, he said, "Your airport are very expensive and fuel taxes are among the highest. Please make doing business easier." He answered yes to questions on further capital injection into AirAsia India, but did not elaborate, just normative answer.

AirAsia India and Tata-Singapore Airlines Vistara venture are the main opponents of the 5/20 rule, which is being supported by almost all the major airlines in India.

AirAsia India is an Indo-Malaysian low cost airline headquartered in Bengaluru, India. The company owned by Air Asia Berhad holding 49 percent of shares, Tata sons 40 percent and Telestra Tradeplace on remaining shares.