This is a good article. Click here for more information.

AirAsia India

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search

AirAsia India
AirAsia New Logo.svg
IATA ICAO Callsign
I5[1] IAD[1] RED KNIGHT[2]
Founded28 March 2013; 7 years ago (2013-03-28)
Commenced operations12 June 2014 (2014-06-12)
HubsBangalore
Secondary hubs
Frequent-flyer programBIG Loyalty
Fleet size30
Destinations20
Parent companyTata Group
HeadquartersBangalore, India[3]
Key people
  • Banmali Agrawala (Chairman)
  • Sunil Bhaskaran (CEO)
Websiteairasia.com/en/gb

AirAsia India is an airline in India headquartered in Bangalore, Karnataka. The airline is a joint venture with Tata Sons holding 51% stake in the airline and AirAsia Investment Limited (Malaysia) holding 49% stake. AirAsia India commenced operations on 12 June 2014 with Bangalore as its primary hub.

AirAsia is the first foreign airline to set up a subsidiary in India and the company marked the Tata Group's return to the aviation industry after 60 years, having ceded Air India in 1946. As of June 2020, AirAsia India was the 4th largest carrier in India, after IndiGo, SpiceJet and Air India, with a market share of 7.2%.[4]

History[edit]

In Feb. 2013, with the Indian government allowing a foreign direct investment of up to 49% in airlines, AirAsia Berhad applied to the Indian Foreign Investment Promotion Board (FIPB) seeking approval for commencing its operations in India.[5][6] In March 2013, AirAsia announced that it would establish a joint venture with Tata Sons and Telestra Tradeplace with Tata Sons representing the airline with two non-executive directors in the board.[7][8][9]

The airliner planned to operate with the world's lowest unit cost of 1.25 (1.8¢ US) per available seat kilometre and a passenger break-even load factor of 52%. It also planned to hedge 100% of its fuel requirements for the first three years and to achieve an aircraft turnaround time of 25 minutes.[10]

AirAsia planned to begin operations to various tier 2 and tier 3 cities with Chennai International Airport as its main operating base.[11] According to KPMG, the introduction of AirAsia was expected to cause another price war, ultimately leading to an increase in air traffic and some consolidation in the Indian aviation sector.[12] AirAsia initially invested an amount of US$50 million and in preparation for its operations in India, it struck deals with online and offline travel agents.[13][14] On 3 March 2013, the FIPB officially permitted AirAsia to rent or lease aircraft and to carry cargo on its scheduled flights. The airline then applied for permission to schedule aircraft and transport passengers,[15] which the FIPB accepted on 6 March.[16]

AirAsia India was established on 28 March 2013 and became the first foreign airline to set up a subsidiary in India.[17][18] In April, the airline started recruiting candidates for pilots and cabin crew.[19] As the final procedure to obtain Air Operator Permit, a proving flight was conducted on 1 and 2 May 2014 flying from Chennai to Kochi, Bangalore and Kolkata.[20] On 7 May 2014, the Directorate General of Civil Aviation (India)|DGCA issued an Air Operator Permit to the company.[21] On 30 May 2014, the airline announced the shifting of its base to Bangalore and its first flight from there to Goa.[22] AirAsia operated its maiden flight on 12 June 2014.[23][24] In June 2015, the airline made Indira Gandhi International Airport, Delhi its secondary hub for North Indian operations.[25] In August 2015, Tata Sons increased its stake to 40.06% from 30% earlier by injecting fresh equity while Telestra's share was reduced to 10% from 20%.[26][27] As of July 2019, AirAsia India is the fourth largest low-cost carrier in India, behind IndiGo, SpiceJet and GoAir, with a market share of 7.1%.[28]

In January 2018, then Managing Director and Chief Executive Amar Abrol announced plans of the company to expect a fleet of 21 aircraft by the year end, which would make it eligible to operate overseas flights.[29]

In July 2020, AirAsia India launched an aviation analytics app that would help enhance the operational efficiency of the airline by monitoring and helping manage aircraft turnaround between flights with data analytics in real time. Mr. Sunil Bhaskaran, MD & CEO, AirAsia India and Mr. Shankar Narayanan, President and Global Head Retail, CPG, Travel and Hospitality, Tata Consultancy Services were among the many who were present at the digital launch.[30]

Corporate affairs[edit]

AirAsia India is headquartered in Bangalore, India.[31] Prior to the airline's formation, Tony Fernandes, founder of AirAsia group, announced that he would like Ratan Tata to be the chairman of the airline; however the latter refused, though he later consented to being the chief advisor to the AirAsia India management board.[32][33] On 15 May 2013, AirAsia India appointed management consultant Mittu Chandilya as CEO.[34] A month later, on 17 June, S. Ramadorai, the non-executive vice-chairman of Tata Consultancy Services, was appointed as the chairman of the airline.[35] In April 2016, Amar Abrol replaced Mittu Chandilya as the CEO of the airline.[36] In June 2019, Amar Abrol reportedly quit and in October 2018, AirAsia India announced that Sunil Bhaskaran had been appointed Managing Director and CEO of the airline.[37]

Indian business newspaper Business Standard reported on July 9th, 2020, that Tata Sons were in advanced talks to buy out AirAsia Group Bhd's 49% stake in the joint venture.[38][39]

Destinations[edit]

AirAsia India operates over 200 daily flights connecting 21 destinations across India.[40]

State City Airport Notes Refs
Andhra Pradesh Visakhapatnam Visakhapatnam Airport [41]
Assam Guwahati Lokpriya Gopinath Bordoloi International Airport [42]
Chandigarh Chandigarh Chandigarh International Airport [43]
Delhi Delhi Indira Gandhi International Airport [42]
Goa Dabolim Dabolim Airport [24][44]
Gujarat Ahmedabad Sardar Vallabhbhai Patel International Airport [45]
Gujarat Surat Surat Airport Terminated
Jammu and Kashmir Srinagar Sheikh ul-Alam International Airport
Jharkhand Ranchi Birsa Munda Airport [46]
Karnataka Bangalore Kempegowda International Airport Hub [24][47]
Kerala Kochi Cochin International Airport [48]
Madhya Pradesh Indore Devi Ahilya Bai Holkar Airport [49]
Maharashtra Mumbai Chhatrapati Shivaji Maharaj International Airport [42][50]
Nagpur Dr. Babasaheb Ambedkar International Airport Terminated [51]
Pune Pune Airport [52]
Manipur Imphal Imphal Airport [53]
Odisha Bhubaneswar Biju Patnaik Airport
Punjab Amritsar Sri Guru Ram Dass Jee International Airport Terminated [54]
Rajasthan Jaipur Jaipur International Airport [43]
Tamil Nadu Chennai Chennai International Airport
Telangana Hyderabad Rajiv Gandhi International Airport
West Bengal Kolkata Netaji Subhas Chandra Bose International Airport [55]
Siliguri Bagdogra Airport [46]

Fleet[edit]

AirAsia India operates a fleet of Airbus A320 aircraft.

As of January 2020, AirAsia India operates the following aircraft:[56]

AirAsia India fleet
Aircraft In service Orders Passengers Notes
Airbus A320-200 30 180
Airbus A320neo 2 186
Total 30 2

Controversies[edit]

Air Asia India has had a turbulent history since it commenced operations in India in 2014. Two years later the CBI and ED started a probe against the airline for allegedly trying to influence the government over-relaxation of the 5/20 rule which made it mandatory for airlines to complete five years or have at least 20 aircraft before being permitted to fly international routes.

Later, former chairman of TATA Group Cyrus Mistry alleged that there were corporate governance lapses between the two joint venture partners.

In six years of operations, there have been a lot of changes in the top and middle management. There have been resignations of CEOs and some of the board of directors of the airline.[57]

On safety issues,Captain Gaurav Taneja, an employee of the airline, raised concerns regarding the sub-standard employee policy of the airline and safety issues of passengers, as well as pilots and flight operations, on 15 June 2020. He added that the airline had suspended him for standing against it, and had issued a show-cause notice for defaming the airline. The DGCA had started an investigation on the issue.[58] Taneja alleged that the airline had asked its pilots to do a targeted (98) percent of landings[59] in a certain configuration of the aircraft, which if not followed can be found a violation of the company's SOPs and can result in pay cuts at the end of the year. He said that these policies can be less safe if the pilot thinks that the other configurations[60] are more appropriate to land on certain airports due to length of the runway, weather or other circumstances.[61] On 10th August 2020 with regards to the concern raised by Gaurav Taneja, Directorate General of Civil Aviation (DGCA) suspends Captain Manish Uppal, the Head of Operations, Air Asia and Captain Mukesh Neema, Chief of Flight Safety, Air Asia, over safety violations by Air Asia.[62]

References[edit]

  1. ^ a b "AirAsia India". ch-aviation. Archived from the original on 30 December 2016. Retrieved 24 December 2016.
  2. ^ "JO 7340.2G Contractions" (PDF). Federal Aviation Administration. 5 January 2017. p. 3-1-10. Archived (PDF) from the original on 11 June 2017. Retrieved 6 August 2017.
  3. ^ "AirAsia India to set up innovation centre in Bengaluru". Forbes India. 27 September 2017. Archived from the original on 1 December 2017.
  4. ^ "Airlines struggle to fill seats in June as travel demand remains muted". Livemint. Retrieved 1 August 2020.
  5. ^ "AirAsia India to take to the skies in Q4". MCIL Multimedia. Archived from the original on 24 February 2013. Retrieved 21 February 2013.
  6. ^ Kurlantzick, Joshua (23 December 2007). "Does Low Cost Mean High Risk?". The New York Times. Archived from the original on 3 November 2014. Retrieved 28 April 2010.
  7. ^ "AirAsia to tie up with Tata Sons for new airline in India". Times of India. 21 February 2013. Archived from the original on 27 April 2016. Retrieved 25 March 2016.
  8. ^ "Tata Sons, Telestra Tradeplace and Air Asia to form Air Asia India". The Economic Times. 20 February 2013. Archived from the original on 7 November 2016. Retrieved 25 March 2016.
  9. ^ "AirAsia incorporates company for Indian venture". The Times of India. New Delhi. Press Trust of India. 31 March 2013. Archived from the original on 31 March 2013. Retrieved 31 March 2013.
  10. ^ "Passengers' perceptions of low cost airlines and full service carriers". Cranfield University. 2005. Archived from the original on 13 March 2017. Retrieved 25 March 2016.
  11. ^ "Tatas plan return flight with AirAsia on board". NDTV. Archived from the original on 21 February 2013. Retrieved 21 February 2013.
  12. ^ "AirAsia's India foray good news; see more competition: KPMG". CNBC. 21 February 2013. Archived from the original on 4 March 2016. Retrieved 25 March 2016.
  13. ^ "FIPB approves AirAsia-Tata plan". The Hindu. 6 March 2013. Archived from the original on 28 May 2013. Retrieved 30 April 2016.
  14. ^ "Air Asia to make strong sales pitch, ties up with portals, agents". Business Standard. 23 February 2013. Archived from the original on 8 March 2016. Retrieved 25 March 2016.
  15. ^ "Air Asia, Tata Group JV seeks permission for aircraft leasing". Indian Express. 3 March 2013. Archived from the original on 6 March 2013. Retrieved 25 March 2016.
  16. ^ "AirAsia's India investment plan gets FIPB nod". Reuters. 6 March 2013. Archived from the original on 29 September 2015. Retrieved 25 March 2016.
  17. ^ "AirAsia incorporates Indian venture; files all papers with MCA". The Economic Times. 3 April 2013. Retrieved 25 March 2016.
  18. ^ "FIPB to take up AirAsia India entry proposal on March 6". The Hindu Business Line. 22 February 2013. Archived from the original on 5 January 2016. Retrieved 25 March 2016.
  19. ^ "AirAsia recruitment drive for India gets overwhelming response". The Economic Times. 14 April 2013. Retrieved 25 March 2016.
  20. ^ "AirAsia India Proving Flights: Day 2". The Flying Engineer. 2 May 2015. Archived from the original on 3 July 2015. Retrieved 2 July 2015.
  21. ^ "AirAsia India gets approval to fly". BBC News. 8 May 2014. Archived from the original on 21 May 2014. Retrieved 21 May 2014.
  22. ^ "AirAsia India launches and shifts base to Bengaluru". anna.aero. 18 June 2014. Archived from the original on 26 June 2014. Retrieved 5 September 2014.
  23. ^ "AirAsia India Tickets on sale from today". NDTV. 30 May 2014. Archived from the original on 29 May 2014. Retrieved 30 May 2014.
  24. ^ a b c "AirAsia India announces maiden flight from Bangalore to Goa for Rs 990". IBNLive. 30 May 2014. Archived from the original on 3 January 2015. Retrieved 2 July 2015.
  25. ^ "AirAsia looking for a third hub after Delhi". The Economic Times. 21 May 2015. Retrieved 8 March 2016.
  26. ^ "ATata Sons increase AirAsia India stake to 41%". The Economic Times. 18 August 2015. Archived from the original on 27 August 2016. Retrieved 25 March 2016.
  27. ^ "Tata group ramps up stake in Air Asia". Ch-aviation. 18 August 2015. Archived from the original on 19 October 2015. Retrieved 8 March 2016.
  28. ^ Traffic Data July 2019 (PDF) (Report). DGCA. 19 July 2020.
  29. ^ "AirAsia India Says No Plans to Look at Air India Stake". News18. Retrieved 17 January 2018.
  30. ^ "AirAsia India launches the 'RedSmart' App". MarTech Series. 14 July 2020. Retrieved 26 July 2020.
  31. ^ "AirAsia India shifts base to Bengaluru from Chennai". Times of India. 30 May 2014. Archived from the original on 27 April 2016. Retrieved 25 March 2016.
  32. ^ "AirAsia wants Ratan Tata to head JV". The Economic Times. 24 February 2013. Retrieved 25 March 2016.
  33. ^ "Ratan Tata to be the chief advisor to AirAsia India". The Economic Times. 17 June 2013. Retrieved 2 July 2015.
  34. ^ "Singapore based Mittu Chandilya appointed CEO of Air Asia India". The Economic Times. 15 May 2013. Retrieved 2 July 2015.
  35. ^ "AirAsia India appoints TCS' S Ramadorai as Chairman". The Economic Times. 17 June 2013. Archived from the original on 28 January 2018. Retrieved 2 July 2015.
  36. ^ "Meet Amar Abrol, AirAsia India's new CEO who is set to replace Chandilya". Hindustan Times. 18 March 2016. Archived from the original on 22 May 2016. Retrieved 12 May 2016.
  37. ^ Barman, Arijit; Chowdhury, Anirban (11 October 2018). "Tata Steel veteran Sunil Bhaskaran to be new Air Asia India boss". The Economic Times.
  38. ^ Phadnis, Dev Chatterjee & Aneesh (9 July 2020). "Tata Sons in talks to acquire AirAsia India stake at a steep discount". Business Standard India. Retrieved 11 July 2020.
  39. ^ hermesauto (9 July 2020). "Tata Sons in talks to buy out AirAsia India stake at steep discount: Report". The Straits Times. Retrieved 11 July 2020.
  40. ^ "AirAsia India emerges No. 1 in On-Time Performance by the Directorate General of Civil Aviation for January 2020". newsroom.airasia.com. Retrieved 2 August 2020.
  41. ^ "AirAsia India to start Bangalore-Visakhapatnam service from 18 June 2015". AirAsia India. 8 March 2016. Archived from the original on 22 July 2015. Retrieved 25 March 2016.
  42. ^ a b c "AirAsia India set to launch flights from New Delhi". Business Standard. 20 April 2015. Archived from the original on 27 April 2015. Retrieved 20 April 2015.
  43. ^ a b "Air Asia adds Jaipur and Chandigarh". Air Asia (Press release). 24 July 2014. Archived from the original on 20 March 2016. Retrieved 8 March 2016.
  44. ^ https://www.businesstraveller.com/business-travel/2018/03/01/airasia-india-commences-operations-nagpur-indore/
  45. ^ https://www.deshgujarat.com/2019/10/25/airasia-india-adds-ahmedabad-as-its-21st-destination/
  46. ^ a b "Air Asia launches Kolkata Ranchi". The Economic Times. Archived from the original on 22 March 2017. Retrieved 29 July 2017.
  47. ^ https://www.businesstraveller.com/business-travel/2018/03/01/airasia-india-commences-operations-nagpur-indore/
  48. ^ "Air Asia announces Kochi flights". NDTV. 17 June 2014. Archived from the original on 4 March 2016. Retrieved 8 March 2016.
  49. ^ "AirAsia India to commence flight operations to Nagpur and Indore". Business Standard. 27 February 2018. Archived from the original on 28 February 2018. Retrieved 27 February 2018.
  50. ^ "AirAsia India announces Mumbai as its next destination and add 20th aircraft to its fleet — AirAsia Newsroom". Newsroom.airasia.com. Retrieved 3 November 2019.
  51. ^ "AirAsia India to commence flight operations to Nagpur and Indore". Business Standard. 27 February 2018. Archived from the original on 28 February 2018. Retrieved 27 February 2018.
  52. ^ "Airasia India launches services to Pune". New Indian Express. 18 December 2014. Archived from the original on 15 November 2015. Retrieved 8 March 2016.
  53. ^ "AirAsia Adds Another New Route, Fares Start at Rs. 1/Km". NDTV. 3 June 2015. Archived from the original on 3 March 2016. Retrieved 8 March 2016.
  54. ^ Bernama. "AirAsia India to launch Amritsar route next month". The Edge Markets. Archived from the original on 13 June 2018. Retrieved 14 June 2018.
  55. ^ https://www.businesstraveller.com/business-travel/2018/03/01/airasia-india-commences-operations-nagpur-indore/
  56. ^ "AirAsia India Fleet Details and History". planespotters.net. 23 August 2018. Retrieved 23 August 2018.
  57. ^ https://www.thehindubusinessline.com/economy/logistics/airasia-indias-co-owner-may-just-be-running-out-of-patience-cash/article31892620.ece
  58. ^ "Explained - Why Gaurav Taneja's allegations against AirAsia India may set a precedent".
  59. ^ "AirAsia Flap 3 Landing - YouTube". www.youtube.com. Retrieved 14 July 2020.
  60. ^ "AirAsia Flap 3 Landing - YouTube". www.youtube.com. Retrieved 14 July 2020.
  61. ^ "AirAsia India under probe as suspended pilot Gaurav Taneja alleges safety violations". Retrieved 16 June 2020.
  62. ^ [1],Suspension of Head of Operation and Chief of Flight Safety.

External links[edit]

Media related to AirAsia India at Wikimedia Commons