Mum-Delhi not priority; prospects bright in South: AirAsia
AirAsia is among low-cost airlines that derive a significant portion of their revenue by charging for every service offered and will replicate the same model in India too.
July 01, 2013 / 17:40 IST
AirAsia, which plans to launch a budget airline in India is keen to add at least 10 planes in a year, even as it awaits regulatory approvals to start operations.
Tony Fernandes, the airline's chief executive said, he is in no hurry to connect Delhi-Mumbai at this point in time. However, he finds big opportunity in South India, he added.Read This: AirAsia's Chandilya will have to be cost leader in IndiaAirAsia is among low-cost airlines that derive a significant portion of their revenue by charging for every service offered and will replicate the same model in India too.In fact, Fernandes applauded the Directorate General of Civil Aviation's directive allowing airline to 'unbundle' services offered to passengers. "After launching operations, we shall charge for extra meals, baggage and seats," he said.The airline currently charges anything between Rs 100-400 for a standard seat selection. Paying these charges allowed the passengers get a comparatively comfortable seat with more leg space along with priority in boarding the flight.Recently, domestic carriers like Jet Airways, IndiGo and Air India have unbundled services and will charge for every additional service offered to customers. This development has alarmed AirAsia to further fine-tune strategies for India operations.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
