AirAsia India Launched Operations Last June 12

Tuesday, 3rd June 2014 at 04:39am

AirAsia India will finally take off after more than a year of waiting for the approval of its application from the country's aviation regulator.

Last July 12, the new airline marked its historic milestone when it launched its twin inaugural flights, Bangalore-Goa and Bangalore-Chennai flights, to start its maiden operations.

AirAsia India, like its sister affiliates under the AirAsia group, will adopt the same service that AirAsia is known for�"budget travel at incredibly low fares. The entry of the low-cost affiliate into the Indian travel market also marks the beginning of an era where passengers have to pay everything else aside from the seat.

Indian travelers on domestic flights have not experienced a no-frills service akin to what AirAsia has been offering outside India. For much of India's budget travel industry history, no airlines have offered products and services that closely match what AirAsia offers to their customers across the region via its network of subsidiaries. For example, Indian carriers, whether low-cost or full-service airlines, offer free checked baggage to their customers. AirAsia India will change that as it will impose corresponding charges for every extra service including checked baggage, says CAPA South Asia CEO Kapil Kaul.

Currently, most low-cost carriers in the country offer extra service with a fee like meals, extra baggage, preferred seats, priority boarding, and lounges, but they allow free checked baggage of up to 15 kilos and refund canceled flights with a cancellation fee.

With AirAsia India, those services don't come free. Essentially, passengers taking AirAsia flights will have the option to pay only the basic seat accommodation.

The entry of AirAsia Bhd. into the Indian local market has been a controversial issue since it formed a joint venture with its local counterpart, Tata Group, to set up a local subsidiary of its highly-successful low-cost empire.

All of the local existing airlines show their opposition to the joint venture citing violation of certain provisions of the newly-amended aviation law. AirAsia Bhd., however, has repeatedly denied the allegation, prompting its CEO, Tony Fernandes, to accuse IndiGo of stalling its maiden operations. IndiGo initiated the filing of case against AirAsia with the support of the rest of the local carriers by forming a group called Federation of Indian Airlines (FIA) just for that purpose.

AirAsia Bhd. owns a 49% stake in AirAsia India as allowed in the newly-amended aviation law, while Tata Group and Telestra hold the remaining shares. It initially operated a fleet of two A320 aircraft for its maiden operations.

By: Pete Lee.