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AirAsia, which is now looking at a December takeoff, hopes to offer tickets that are not merely cheaper than its competition, but radically cheaper.
Pointing out that the Number One thing for AirAsia was low fares, the airline’s Chief Executive Officer, Mittu Chandilya, told Business Line that depending on when a passenger booked he or she might even be able to get a 75 per cent fare discount.
“We will always run promotional fares which are tickets sold for a limited period well in advance, which could offer fares which are lower by about 75 per cent,” Chandilya said.
For example, said Chandilya, a passenger booking tickets for a hypothetical Chennai-Delhi flight a month in advance may get it for about Rs 4,200-4,300, while a week before the flight the ticket may cost Rs 7,000.
“It will still be lower than the market. This is our hope as we have not yet started operations,” he added.
Delhi services
While AirAsia’s promoter Tony Fernandes had indicated that the airline will avoid metros to cut down on operating costs, Chandilya said AirAsia India would look to start services to Delhi in about one-and-a-half years.
The airline has applied for slots in about nine airports — seven in South India and two in North and East India. A slot is a takeoff and landing sequence which is required for any airline to become operational.
At the moment the airline is waiting for a No Objection Certificate from the Home Ministry so that it can apply for an airline operating licence.
AirAsian India is a three-way joint venture between low-cost airline AirAsia, Tata Sons and Telestra. The Chennai-headquartered venture started with an initial investmet of $30 million.
ashwini.phadnis@thehindu.co.in
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