Airline News
AirAsia India eyes break even result
February 10th 2015
AirAsia India chief, Mittu Chandilya, said the Bengalaru-based airline was looking to break even between May and June this year as more Airbus A320 aircraft join its fleet and services to Delhi commence. Read More » Chandilya said the break-even deadline was pushed back from last November owing to various external factors, involving regulatory issues, but did not elaborate. He said the airline had plans to take delivery of four more planes last year itself.
"We are already cash-flow positive. We are expecting to break even anywhere between May and June. AirAsia India will hit break-even the moment we hit the sixth plane," the chief told reporters in Delhi last week. The carrier currently operates three A320s, with a fourth to join by month’s end. It plans to take a total 10 more aircraft in 2015. AirAsia India is a joint venture between the AirAsia Group which holds a 49% stake, the Tata Group (30%) and Indian mogul Arun Bhatia’s Telestra Tradeplace holding the rest.
On January 9, the Tata Group co-launched India’s latest full-service carrier, Vistara, in collaboration with legacy Singapore Airlines. Vistara currently operates a fleet of three A320s configured with business, premium economy and economy seating. This Week in Asia-Pacific Aviation understands that forward bookings for the business and economy cabins look normal, but sales in premium economy are far below projected levels.
At current, both AirAsia India and Vistara are bound by India’s Directorate General of Civil Aviation’s (DGCA) 5/20 rule, which makes it mandatory for airlines to have five years of domestic operations and a 20-aircraft fleet to become eligible for flying international. However, the DGCA has recently said it would review the 5/20 rule.
