A number of interesting events took place in the Indian aviation industry in the year 2014. Operations on new routes were announced by carriers based in the country as well as global ones. The aviation authorities also introduced a number of changes in its terms and conditions regarding finance and operations. As a result, India emerged as one of the most lucrative markets in the world. This is the reason that global carriers are willing to set up their operations in this country, and recently Vistara andAirAsia India did the same. The former one operates under the joint venture of Tata Sons and Malaysia Airlines, and the latter one is the Indian wing of the Malaysia-based AirAsia Berhad. These Indo-Malaysian carriers significantly affected equations of the aviation market in the country. The launch of AirAsia created a fare war situation, as other low-cost carriers (LCCs) also came up with their own offers, after it announced the introduction plan.

Launch of AirAsia

The launch of this airline was announced back in 2013. It is a joint venture between AirAsia Berhad, Tata Sons and Telestra Tradeplace with 49, 30 and 21 per cent shares, respectively. This not only marked the return of the Tata Group in the Indian skies, but was also the first foreign company set up an airline in India. In addition, it was also the first venture to take advantage of the increased Foreign Direct Investment (FDI) limit in the country. Legal procedures and getting certificates from respective authorities took quite some time, and the carrier was finally launched on June 12, 2014. Its maiden flight took off from Bengaluru to Goa on May 8, 2014.

Operations

This airline is renowned for operating at the lowest unit cost in the world. The plans of the airline include operations at INR 1.25 per seat kilometre. In addition it is looking forward to achieve a turnaround time of just 25 minutes. The parent company has proven its efficiency on several occasions, and is successfully running a number of other subsidiaries. Similarly, it is expected that AirAsia India will also generate huge turnover for the company.

Initially, the airline planned to operate only in the southern part of India, but new operations were launched after observing a high demand for air travel in Tier II and III cities in North India. Currently, it serves 11 cities in the nation, including flights to Goa, Chennai, Kochi, Jaipur and Pune.

Fleet

Before commencing operations, this carrier received the approval to import 10 aircraft. It follows a single model strategy and currently operates 3 Airbus A320-200. This not only increases the efficiency, but also allows the company to save on maintenance. The training cost is also lower as pilots do not have to learn various complex technicalities. In addition, the models used by the airline are known for its super efficiency. This is the reason that it offers cheap flights to Goa, Jaipur and other destinations of the country.

Future Plans

As per reports, the company was spotted enquiring slots at the Delhi airport, and may soon star operation on this route as well. In addition, it may announce flights to a few more cities in northern part of the country because of the growing opportunities. Soon, people may see more than 11 options in the AirAsia India booking list.