“It’s the start of our next chapter in India. We have been very categorical in stating that we get new aircraft as soon as possible,” chief executive Amar Abrol said in an interview with Deal Street Asia.
Investors in AirAsia India have agreed to provide fresh funds for the low-fare airline as it aims to expand its fleet of six aircraft and launch overseas operations.
“It’s the start of our next chapter in India. We have been very categorical in stating that we get new aircraft as soon as possible,” chief executive Amar Abrol said in an interview with Deal Street Asia.
Abrol said it’s a “natural fit” for the company to look to Thailand, Indonesia and Malaysia where its part owner AirAsia Group Bhd is a dominant player.
However, the airline’s expansion strategy has been questioned by consultancy, Centre for Aviation (CAPA).
“AirAsia India is yet to get their India strategy right and continues to be an underperformer. The fleet size of six to seven aircraft cannot make it relevant and competitive, and bolder expansion means more capital burn. I don’t see clarity in AirAsia India as yet,” said Kapil Kaul, CAPA South Asia chief executive.
Tata Sons holds 51% in AirAsia India while Malaysia’s AirAsia Bhd holds the rest.