AirAsia owner Capital A ‘very bullish’ on Indian market, says CEO Tony Fernandes

AirAsia owner Capital A ‘very bullish’ on Indian market, says CEO Tony Fernandes

Tony Fernandes, the CEO of Capital A, the parent company of AirAsia, expressed a high level of optimism about the Indian market. He emphasized the company’s strong bullish sentiment toward India and its desire to attract more tourists to the country. This positive outlook aligns with Capital A’s strategic interests in India.

Notably, Capital A (formerly known as AirAsia Group) completed the sale of its Indian airline subsidiary to Tata Group in the previous year. This transaction involved the transfer of ownership of AirAsia India to Tata Group, marking a significant development in the Indian aviation sector.

Fernandes indicated that Capital A is actively collaborating with Tata Group and is exploring various avenues for cooperation with the conglomerate. This suggests that there are ongoing efforts to leverage the synergies between the two entities, potentially leading to various initiatives in the Indian market.

Additionally, last year, Tata Group-owned Air India entered into agreements to acquire a 100 percent stake in AirAsia India. This strategic move is part of Tata Group’s efforts to strengthen its presence in the Indian aviation sector. It has also initiated the process of merging Air India Express with Air India, forming a single low-cost carrier in India. These developments highlight the evolving landscape of aviation in India and the active involvement of major players like Tata Group and Capital A.

The merger between Air India and AirAsia India is anticipated to be a comprehensive process, with an estimated duration of around 12 months. It is expected to be concluded by the end of 2023, signifying a significant development in the Indian aviation landscape.

Tony Fernandes emphasized that Capital A, through AirAsia, is focused on facilitating air travel both into and out of India. This approach involves attracting tourists to India and providing Indian travelers with access to international destinations.

AirAsia presently maintains approximately 15 landing points in India. Recently, the airline expanded its network to include Amritsar, which is now connected to the Malaysian capital city. Fernandes highlighted the company’s interest in further expanding its reach within India.

Specifically, the company aims to establish connections with other destinations in India, encompassing secondary and tertiary airports as well as major terminals such as T2 and T3. This expansion strategy underscores the airline’s commitment to enhancing connectivity within India and facilitating air travel for a broad range of passengers, including those traveling to and from secondary and tertiary cities in the country.

Tony Fernandes emphasized AirAsia’s commitment to expanding its connectivity within India, taking into account the country’s ongoing efforts to establish more airports and enhance its aviation infrastructure. This suggests that AirAsia is keen to leverage India’s growing air travel market and offer passengers greater accessibility to various destinations within the country.

One notable aspect of AirAsia’s operations in India is its diverse passenger base. Fernandes highlighted that 60 percent of the airline’s passengers on Indian routes are originating from outside India, while the remaining 40 percent comprise the Indian diaspora and tourists visiting India. This diversity in passenger profiles underscores the airline’s ability to attract a broad spectrum of travelers and tap into multiple segments of the Indian aviation market.

Furthermore, Fernandes expressed confidence in the profitability and revenue prospects of the Indian market for AirAsia. Despite the challenges and complexities of the aviation industry, AirAsia appears to be optimistic about its ongoing operations in India and its ability to capture demand for both inbound and outbound travel.

The reference to “getting a lot of traffic out of India” underscores AirAsia’s role as a facilitator of international travel for Indian passengers. This indicates the airline’s contribution to connecting India with global destinations and catering to the preferences and needs of Indian travelers.

Capital A, the investment holding company, boasts a portfolio of diverse travel and lifestyle businesses that are strategically aligned to leverage the power of data and technology. This portfolio includes AirAsia, one of the most prominent and well-known brands in the travel industry. Capital A’s approach involves harnessing data-driven insights and technological advancements to drive synergy among its various business entities, ultimately delivering value and innovative solutions to travelers and consumers.

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