Malaysian low-cost carrier AirAsia has said its India operations should begin later this year with three aircraft for the Southern region and it would also look at setting up some ancillary businesses here. "I have always said we will start in the fourth quarter. People said September, October whatever. I hope we start this year. It is not about when we start. It is about we start it right. I mean no rush," AirAsia group CEO Tony Fernandes told reporters on his maiden visit to Chennai after he roped in the Tatas and a Delhi-based businessman Arun Bhatia for his joint venture.
AirAsia India is a joint venture with Tata Sons and Arun Bhatia of Telestra Tradeplace with 49:30:21 holding.
"We haven't got the approvals yet and I still believe we can start this year. May be September is a bit ambitious. I do not want to commit a date. Really, it is on the hands of the regulators to give us all the approvals. We are at the NoC stage. The key one is NoC from the Union home ministry," Fernandes said. AirAsia is expected to bring in competitive pricing market with its "nano" airfares. To a particular query, Fernandes said AirAsia India will be the "Chennai SuperKings of cost" in offering airline services. "We will start with three planes. We rather not say it now (the destinations). A quick way of looking at is Tiruchirapalli. There was never a flight from Kuala Lumpur to Tiruchirapalli," he said. "Come next week, there will be three flights a day. We have benefitted tremendous amount of people. So, we will apply tremendous amount of strategy to India and look at new destinations and markets that have been under-served."
To a query on roping in former Tata Group ex-chairman Ratan Tata, Fernandes said, "Mr Tata is one of the most respected businessmen in the world, not just here. He is a humble, simple guy. He fits our culture very well He is very understated of what he achieved here.” AirAsia has already put in place a strong leadership team for its India operations. former TCS chief S Ramadorai has been appointed chairman, while Ratan Tata as chief adviser to the board and Mittu Chandalia as the CEO. Besides, R Venkataraman (former executive assistant to Tata) and Bharat Vasani (chief legal counsel of the Tata Group), are among the directors on the board. AirAsia will be represented by Tony Fernandes and Kamarudin Bin Meranu. Fernandes said the company would also look at generating revenues by offering ancillary services. "Ancillary income is adding value services that you may or may not want. Ancillary income is selling you stuff that you may buy at the airport, or you may need like a travel insurance. Very few people who used to fly with us have travel insurance.
