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AirAsia flights cheap by Rs 1000, might avoid Mumbai-Delhi route

Posted in Business2 years ago • Written by Carla NightNo Comments

Delhi route may not be an option for AirAsia flight and would give a thought about smaller cities and metros in the south. This unique strategy is a part of keeping the cost low and to get attention of the flying population that is increasing in this segment. A budget carrier run by Tony Fernandes distressed aviation ministry and other carriers of established country when announced the joint venture of airlines with Tata Group. This will mainly focus on cities like Hyderabad, Bangalore, Chennai and among the north would be Ahmadabad and Jaipur said top airline officials.

The decision seemed surprising as the route not chosen of Mumbai and Delhi is among the most lucrative ones and all other flight have a presence there. However, other charger like landing and other expenses are higher by 255 at these airports than the rest. There are no other low cost options as well. AirAsia regional manager — India, Sri Lanka and Bangladesh, Suresh Nair said,”We are going after a pan-India licence and not a regional one,”clearing up the group strategy.

He also added “Avoiding Delhi and Mumbai doesn’t make us a regional carrier because India is much beyond that. If we fly, say, Chennai-Ahmedabad or Chennai-Jaipur, that would mean national operations. We would fly wherever we can to keep cost of operations low,” The move is as per AirAsia strategy as they plan to grab attention for other cities avoiding these two big cities. Some travel fraternity is also of the verdict that with this AirAsia will be able to offer unique services at competitive rates and there would be some that do not even exist in the country yet.

Being a part of domestic network you have deal with airports that are expensive but the cost these major cities airport would always be higher comparative to other domestic airports. COO of Nasdaq-listed travel portal, Keyur Joshi, anticipates that the venture should avoid other big airports as well and not just Mumbai and Delhi. “I expect them to avoid Delhi, Mumbai, Bangalore and Hyderabad to keep costs low. Indian airlines have not been able to negotiate with airport operators to resolve that. AirAsia may also prefer to add more frequencies on a route rather than going after many routes, something not yet tried in India,” he supplemented.

February 21, in a conference call Tony Fernandes said “We will avoid certain airports like Delhi and Mumbai because of high charges and also because these airports are slot constrained. We will stimulate the market first with low-cost structure and later as the airports are being developed, we would also look at these newer markets. India is a huge country and we are confident that we will succeed,”. The decision of AirAsia is not sure yet, the routes are yet to be finalized and it cannot be yet commented. AirAsia is getting into domestic venture for the first time  and has been flying in south east Asian countries and various Indian cities.

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