AirAsia to Expand Network in India

Monday, 28th January 2013 at 04:00am

AirAsia is expanding its network of airline affiliates across Asia with the launching of an Indian affiliate which is to be co-owned by an Indian multinational, Videocon Group.

According to a very reliable source privy to the partnership, Asia's leading low-cost airline was considering options to set up a joint venture with a local company, preferably a well-established corporation, that would allow it to own the majority stakes of the formed venture.

Less than half of the joint venture, or 49 percent stakes, should be held by AirAsia.

It was reportedly the Malaysian-based airline who proposed the idea to the Videocon Group and negotiations between the two groups are now ongoing, albeit at a preliminary stage.

The reported talks was confirmed recently by Videocon chairman, Venugopal Dhoot, who told the media that there's nothing specific yet on their discussions with AirAsia. He disclosed to the media that, indeed, AirAsia walked up to them and offered unsolicited business ideas. He didn't elaborate further, adding they were only exploratory talks.

It must be noted that he was, at first, not in unison with the government and proponents for the liberalization of the aviation industry in the country to foreign investors. However, for some unknown reasons, he changed his views regarding the matter and now he seems to have liked the idea.

Videocon Group's principal business interests include consumer electronics and home appliances.

AirAsia is the largest low-cost carrier in Asia with affiliate airlines, bearing the same brand, in several countries in the region such as in Indonesia, Thailand, The Philippines and Japan, as well as the budget long-haul sister airline, AirAsia X that operates out of Kuala Lumpur. Recently, AirAsia Bhd has been named by Euromoney magazine as the best managed company in Malaysia and in Asia, under the aviation/airline category.

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