AviationFleet expansion on hold while airline seeks rule clarity

AirAsia India waits for the skies to open (and we’re not talking about the monsoon)

By
|
AirAsia India waits for the skies to open (and we’re not talking about the monsoon)

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.

Welcome to PARKROYAL COLLECTION Marina Bay, Singapore

Eco-friendly practices and innovations, thoughtfully integrated at PARKROYAL COLLECTION Marina Bay, Singapore, provide sustainable travel experiences for everyone.

Read Now

The Brightest Travel Stars Shine
October - December 2022 eBook

A salute to the top performers across Asia Pacific’s travel industry.

Read Now



JDS Travel News JDS Viewpoints JDS Africa/MI