AirAsia India has put its expansion plans on ice while it waits for the Indian government to retain or reform its protectionist 5/20 rule. The rule requires a carrier to be five years old with a fleet of 20 planes before it can fly abroad.
AirAsia India
has put its expansion plans on ice while it waits for the Indian government to
retain or reform its protectionist 5/20 rule. The rule requires a carrier to be
five years old with a fleet of 20 planes before it can fly abroad.
AirAsia India
planned to operate a fleet of at least 10 jets by the end of the year, allowing
it to fly less-competitive routes to smaller Indian cities, before starting
flights overseas that connect passengers with AirAsia’s networks across Asia, Reuters reports.
The airline
has five Airbus Group A320 jets but will await the outcome of the 5/20 rule
deliberations before leasing other aircraft, CEO Mittu Chandilya said in an
interview. The rule is aimed at growing the domestic aviation industry.
“There were
promises about getting some clarity on that before we launched,” said Chandilya
“I haven’t seen anything from this government that is about open skies and free
markets.”
The airline
would stick with its strategy of flying to India’s “tier two” cities and invest
more in marketing, Chandilya told Reuters.