Air Asia Flying to New Heights: Operational Permit Obtained From Civil Aviation Ministry
Air Asia Flying to New Heights: Operational Permit Obtained From Civil Aviation Ministry
In a positive step for Air Asia after it was granted Air Operator Permit (AOP) by the safety regulator, this airline is now coming up with domestic routes. The emphasis is on focused and disciplines cost structure. The biggest bone of contention between airlines in the Indian aviation sector is the price. Keeping fares low will play a major role in the process of garnering more consumers.
CEO Mittu Chandilya has indicated that a low fare policy will be followed by Air Asia. This airline is part of a tripartite joint venture. It is being modelled as a low cost carrier. Air Asia has been granted operational permit by the Directorate General of Civil Aviation. Group Chief Executive Tony Fernandes has also stated that the 12 year battle to make flying affordable continues.
With monopolies and inefficiency having riddled Indian airline industry, the time has now come for a positive change. Air Asia’s motto is “now everyone can fly”. The aim is to make sure that the common man has access to airline travel. The new airline has achieved an NOC from the DGCA last September.
The airline JV has been formed between 3 parties, corporate group TATA Sons, AirAsia Berhad and Telestra Tradeplace. In April this year, the Ministry of Commerce has given the clearance for foreign capital inflow by AirAsia Berhad which will now hold 49% stake in the tripartite joint venture.
30% stake in this joint venture will be held by TATA Sons. Telestra Tradeplace has 21% share in the JV. The initial amount of money approved for the airline is currently 80.98 crore. There are about 6 scheduled domestic airlines in the nation namely Air India, JetLite, Jet Airways, SpiceJet, GoAir and IndiGo. The operating licence of the seventh airline Kingfisher Airlines was suspended in the year 2012. Air Asia now stands the chance of being the seventh airline to operate in the Indian airspace.
Though there are still complications such as a PIL and a plea with the EC, Air Asia’s plans seem to be taking flight as of now. DGCA chief Prabhat Kumar has indicated the matter has not been finalized as of yet because the AOP is subject to the decision of the Delhi HC.
The operations schedule of the airline has to be approved by the DGCA before it can start selling tickets to consumers and beginning operations. Aviation experts are welcoming the move as this will lead to changes such as newer routes, increased competition and cheaper tariffs. In such a situation, the consumer stands to benefit a lot.
With new players in the market, consumers will benefit from increased choices available to them. Commercial flights of this new venture will be started somewhere in August or July if all goes according to plan. Currently, the new airlines will have a fleet of around 28 to 30 leased Airbus A320s by December 2015.
Air Asia India has received the licence to start flights in domestic routes. This is good news for the aviation industry. However, there are challenges which need to be faced if this industry has to experience a revival. Firstly, more steps need to be taken to provide airlines with the freedom to operate on a wide number of routes.
JV airlines such as Air Asia which seek to benefit consumers who have previously not been able to travel by air due to high costs are a positive sign that the industry is recovering from the stupor it had fallen into. With steps being taken to make air travel more safe in the country, India will certainly benefit from the addition to the range of choices anyone flying in this country will now have.
Air Asia India is a positive indication of the expansion of this market to hitherto unchartered territories. With the average person now accessing air travel, the scene looks to be set for a fun-filled journey that is affordable and light on the pocket as well.
