Yesterday (June 12, 2014) saw the first flight of AirAsia’s Indian operation when a flight took off from Bangalore to Goa.
The airline (AirAsia India) is a joint venture between AirAsia (Malaysia) 49%, Tata Group 30% (the founder of Air India that was later nationalized) and Telstra 21%.
The airline will initially only operate using two airplanes but plans to expand.
The return fares for a midweek return between Bangalore and Goa are about $75 taxes included but without other “extras” such as checked bag.
There is another AirAsia launch later this year when Thai AirAsia X is set to start operating. AirAsia has subsidiaries in Thailand, Indonesia and Philippines.
The Tata Group, which owns 30% of AirAsia India, is planning to launch a long-haul carrier based in India that would be 49% owned by Singapore Airlines. This is currently waiting for a regulatory approval.
It is always good to have low cost airlines expanding because they bring the fares down on more full service airlines as well. The AirAsia tends to expand using partnerships in various countries and this is the case with their operations in India as well.