Strategy Being Developed by Air Asia of Indonesia to Start Operations in Crowded Indian Market.

Topics: Airline, AirAsia, Low-cost carrier Pages: 2 (681 words) Published: April 5, 2013
AirAsia is a Malaysian low-cost airline headquartered in Kuala Lumpur. It is Asia's largest, and the world's best, low-fare, no-frills airline and a pioneer of low-cost travel in Asia. AirAsia group operates scheduled domestic and international flights to 78 destinations spanning 25 countries. Its main hub is the Low-Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA). Its affiliate airlines Thai AirAsia, Indonesia AirAsia, AirAsia Philippines and AirAsia Japan have hubs in Don Mueang International Airport,Soekarno–Hatta International Airport, Clark International Airport and Narita International Airport respectively. AirAsia's registered office is in Petaling Jaya, Selangor while its head office is at Kuala Lumpur International Airport. AirAsia operates with the world's lowest unit cost of USD 0.023/ASK and a passenger break-even load factor of 52%. It has hedged 100% of its fuel requirements for the next three years, achieves an aircraft turnaround time of 25 minutes, has a crew productivity level that is triple that of Malaysia Airlines, and achieves an average aircraft utilisation rate of 13 hours a day. All scheduled AirAsia departures from Kuala Lumpur use the Low cost carrier terminal. AirAsia had abolished its fuel surcharges on November 2008, but, due to rising oil prices, the fuel surcharge was re-introduced in May 2011

AirAsia Strategy:
AirAsia, the region's biggest budget carrier, is considering offering some seats for free when it starts flying in India. Passengers will have to pay taxes and other fees, the person said. AirAsia, which is awaiting a license after winning the Indian government's approval this month to form a joint venture, is targeting to start operations by end-2013. AirAsia's ticket prices will be the "No. 1 differentiator" in India where 60 per cent of the market is controlled by discount airlines, is counting on the South Asian country for growth. It's strategy may threaten a recovery at Jet Airways (India)...
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