The Malaysian Airlines’ Air Asia’s Indian arm will soon debut operating flights from major cities, thereby modifying its strategy of connecting only the smaller cities. The airline firm appears to have taken this move to compete with its challengers.
AirAsiaIndiacommenced its operations inIndiaearlier this year connecting cities such as Chennai, Goa,Kochi, Jaipur andChandigarhwith its hub inBangalore. The firm is now planning to start operations from key cities such Mumbai andDelhi. Earlier, the airline announced that it will not operate from these cities owing to the high airport charge over there.
Regarding this, Mittu Chandilya, Chief Executive Officer, AirAsiaIndiastated that the firm decided to operate between smaller cities and developed markets, but the competition is getting heavy everywhere. Consequently, they have decided to take on their challengers in the big markets such as Mumbai andDelhiby announcing flights soon.
Ever since it launched operations inIndia, AirAsia has been witnessing cutthroat competition from other domestic carriers. After announcingBangaloreas its hub, the other airline firms also debuted operating from there. The competition followed theBangalore– Jaipur line too with new flights being launched. However, the industry analysts suggest that AirAsia’s new strategy will help it witness a faster growth inIndia.
The decision of shifting operations to bigger cities is claimed to be a perfect one as it will help the firm in numerous ways. It will not only aid in grabbing more market share for the airline, but also help it in achieving the breakeven faster and provide a much better visibility to the firm.
However, this move of AirAsiaIndiato operate to bigger cities has slowed down the capacity addition plan of the airline. The firm had an aim to add 10 planes by the end of this year, but it has been cut short to six now. Even the sixth aircraft will arrive only in January 2015.
The AirAsia Group recorded Rs 25 crore of loss in the second quarter for their Indian airline, consultancy Centre for Asia Pacific Aviation, claimed a report in August.