AirAsia India to add 20 aircraft and start international operations by mid 2018

AirAsia is India is likely to commence international operations from later part of 2008 as it is expected to have a fleet of 20 aircraft by mid 2018. The joint venture between Tata Sons and Malysian carrier AirAsia, currently runs a domestic budget airline with eight aircraft in its fleet and as per the norm, requires a minimum of 20 planes to fly on international routes. "We will have 14 aircraft in the fleet within this year, depending on the business performance. And, we will add another six planes by the middle of the next year. Then we will get to international operations," AirAsia India Chief Executive Officer Amar Abrol said on the sidelines of the CAPA India Aviation Summit in Mumbai.

AirAsia India is evaluating routes for its proposed international operations, he said, adding that it makes sense for the airline to plug into its existing network in Southeast Asia. "But none of the cities is off limits. Any destination whether it is in the Middle East or Souteast Asia, which can be covered within five hours, is up for grab," he said. Asked if airlines were mulling a fare hike following the increase in jet fuel prices, Abrol said, "I think the market has to find the right balance. In the long term, everybody has to make money and if they do not, they will not be able to survive. Certainly, fares need to be optimised, whether it is because of fuel or non¬fuel (expenses)." He said that though demonetisation did not have much impact on the airline's sale, "we did feel a little bit of pressure on the ancillary revenue".