Leading low-cost carrier AirAsia will now start its operations from Mumbai. After staying away from the 'highly-expensive Mumbai airport' since it started operating in India in June, the airline has finally taken a decision to fly from here.
AirAsia's sister concern AirAsia X had discontinued its international operations from Mumbai and Delhi a couple of years back citing exorbitant price at these airports.
What does airline's promoter say?
During his trip to the city on Thursday, the airline's promoter Tony Fernandes tweeted: "In Incredible India Bombay is changing by the day. AirAsia India will be starting in this metro soon. We are coming." Fernandes was accompanied by his CEO Mittu Chandaliya.
The development is expected to have repercussions among the other established low-cost airlines in the country, which have a large number of flights operating from Mumbai and Delhi.
Airline has its base in Bangalore
AirAsia, which is a joint-venture by AirAsia Berhad of Malaysia, Tata Group and Telestra Trade place, launched its domestic operations in India on June 12. At present, it operates from Bangalore to Kochi, Chennai, Chandigarh, Jaipur and Goa. An AirAsia official said that the airline hopes to make profits once it gets 5-6 aircraft by the year-end.
Offers heavy discounts on advance bookings
AirAsia, which has been successful in most of the markets it operates in, follows the business model of offering heavy discount on advance bookings, apart from earning a high share of its revenue from ancillary services.
Insiders in the aviation industry said that AirAsia's decision to include Mumbai in its operations clearly stems from the fact that the airline needs to take passengers from major hubs like Mumbai and Delhi to remain successful in the long-run.
