AirAsia Chief Tony Fernandes is all set to capture the Indian market and says the aviation market in the country is now favourable and it is the perfect time to enter

In a little more than a decade of existence, the Malaysian low-cost AirAsia has become the ‘airline of choice’ for the common people. The budget carrier is now set to capture the Indian market and is hopeful that AirAsia India operations will begin as early as October this year. Addressing a press conference in New Delhi on July 3, the airlines group chief Tony Fernandes said that “India is fantastically located and can be a major international hub.” He stated that ‘low-cost’ has and will always remain AirAsia’s USP. “I want to bring air ticket to a price where the drivers who drive me in India, can afford to fly.”

The AirAsia chief believes that the market in India is now favourable and it’s the perfect time to enter. “Silly capital has gone out. Eight years ago, I said, I will never come to India as there are crazy guys in this business who had too much money to throw away. They have lost all their money now.”

The young and vibrant Mittu Chandilya, Chief Executive Officer (CEO) of AirAsia India, seemed even more buoyant than his boss. Stating that he is bullish about India and that there is a huge opportunity in the country, he affirms that AirAsia India is a fantastic proposition. “My goal is to make AirAsia India bigger than AirAsia. My aim is to revolutionise completely and create an entirely new market. I am a competitor and will work hard.”

AirAsia India, a joint venture of Air-Asia, Tata Sons and Telestra TradePlace with a 49:30:21 holding, will bring India much closer to the South East Asian countries. Recruitment process has already begun and the clearance from the Foreign Investment Promotion Board (FIPB) has been received. The airline is now hopeful that it will also get no objection certificate (NOC) very soon.

Fernandes seemed extremely satisfied meeting the Union Finance Minister P Chidambaram, Civil Aviation Minister Ajit Singh, Commerce and Industry Minister Anand Sharma and Home Minister Sushilkumar Shinde on July 2. During his visits, he was accompanied by AirAsia adviser Ratan Tata and AirAsia India CEO Mittu Chandilya as well. “The Ministers here are smart,” he says, and adds that the team is explaining to the Ministers what is required and how it will have a multiplier effect.

Fernandes focus now is South India and the airlines will start operations with its head office in the old terminal at Chennai airport and gradually expand to Cochin, Bengaluru and other areas. “The potential of India was always there in my eyes. But the market was not conducive and so I stayed back. There is much scope now although lot of change needs to be done structurally,” he said, in response to a query by Jayant Baranwal, Editor-in-Chief, SP’s Aviation, on the prospects of the Indian aviation market. The AirAsia boss does not grumble about the Indian officialdom either and says that Indian bureaucracy is great. “I have dealt with many governments and I find Indian bureaucrats knowledgeable.”

Cost management is a key to his heart states the AirAsia boss and remarks that Indian revenue management is too primitive. “If you cannot make an airline work in a 1.2 billion population then something is wrong,” he feels. Fernandes says that India has lost many years because of vested interests. “Too many people have vested interests and do not think of what India needs. The government should just think of what is good for India. Airlines should focus on opportunity.”

Unhappy with the Indian Government’s policy of allowing carriers to operate international flights only after five years of domestic operations, he says, “There are some bizarre rules.”

Recounting the failed relationship of AirAsia with Japan’s All Nippon’s Airways (ANA), Fernandes states that the partnership was disastrous. But he says Ratan Tata is fantastic. “We have a fantastic chemistry.” He says that while he has experience in aviation, Ratan Tata has experience of doing business in India and is highly revered in the country. “The partnership with Tata is sacred and so is with Arun Bhatia,” declares Fernandes.

Though the outspoken AirAsia chief admits that there is no guarantee of success, he quickly adds, “You will see me for many years to come.” Welcome aboard!