AirAsia's bid to take over the Indian skies

(MENAFN- NewsBytes)

Kuala Lumpur-based AirAsia launched a joint venture with Tata Sons and Telestra Tradeplace for a new airline in India.

AirAsia Berhad (AirAsia's parent company) would have 49% stake, Tatas would have 30% and Telestra's Amit Bhatia (son-in-law of Lakshmi Mittal) would hold 21% in the company.

Ratan Tata would be the company's chief advisor.

The joint venture with the world's best low cost airline also marked Tata Sons' return to aviation industry after 60 years.

AirAsia, the country's 4th budget carrier made its maiden flight from Bangalore's Kempegowda International Airport for Goa.

The carrier had offered fares for this flight starting from as low as Rs. 990, upholding their commitment to providing the cheapest airfares.

To begin with, AirAsia was to only operate from Bengaluru to 5 other cities.

AirAsia India began expanding and moved to the national capital from 21 May 2015.

New Delhi would be the budget carrier's hub for the North India market.

At this point in time, AirAsia India flew to Chennai, Kochi, Goa, Chandigarh, Jaipur and Pune from its Bengaluru base.

This decision came almost a year after its maiden flight from Bengaluru.

Reports suggest that Tata Sons are looking to increase their holding in AirAsia by buying shares from Telestra Tradeplace which will make them a prominent shareholder.

They are supposedly happy with AirAsia's performance.

Tata Sons also has a joint venture with Singapore Airlines called Vistara, in which it has 51% stake. Industry watchers are speculating about their intentions with the two airlines.

According to media sources, Mittu Chandilya, AirAsia India's Managing Director and Chief Executive is expected to quit the airline.

Chandilya's commitment with AirAsia ends later in February and sources privy to the subject believe that it's unlikely that he extends it.

It has been speculated that he's upset with AirAsia's "micromanagement by its Malaysian parent".

In 2015, the airline saw several seniors exit.

Mittu Chandilya became AirAsia India's CEO at the age of 32 in 2013. At 19 years of age he had obtained a grant for a start-up and his prototype was bought by an FMCG company; he was one of the youngest general managers at Ingersoll Rand at 25.

AirAsia India have replaced Mittu Chandilya with Amar Abrol as its CEO, effective next month.

Abrol is the former CEO of Tune Money.

AirAsia also appointed Ankur Khanna, Air France's finance head in Singapore as the airline's new CFO and Kiran Jain, Delhi airport's aero-marketing head as the new chief commercial officer in AirAsia India.

AirAsia India announced the launch of its new services to Srinagar and Bagdogra from Delhi commencing next month.

The Bangalore-based airline also plans to start new direct flight services on the Delhi-Pune route.

According to a release by AirAsia India, the launch of these new services is aimed at bettering regional connectivity and setting a mark in the country.

AirAsia India is trying hard to expand its fleet size to 20 in order to become eligible for international flying.

According to AirAsia India CEO Amar Abrol, flying international for AirAsia could be possible by mid-2018.

Malaysia, Thailand are popular tourist destinations that AirAsia wants to cover in its international ambit, keeping in mind the operational limitations of their fleet of A320 aircraft.

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