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AirAsia India names new CEO
October 19th 2018
Following the departure of Amar Abrol, AirAsia India this week named senior Tata Group executive, Sunil Bhaskaran, its new CEO, effective November 15. Read More »
The airline said Bhaskaran would "oversee the next phase of expansion and growth of the company". The CEO elect has been with Tata Group for more than 30 years, currently holding the position of vice president of corporate services at Tata Steel.
AirAsia India began operations in 2014. Under Abrol, the airline grew its fleet to 19 A320 aircraft. The LCC will take delivery of another A320 before the end of the year and currently has a 5% share of the Indian domestic market, according to the airline's latest financial update.
The carrier reported an operating loss of INR516 million (US$6.9 million) in the second quarter, more than double the loss in the year-ago quarter. It hopes to break even in 2019.
AirAsia India is a 49:51 joint venture between Malaysia’s AirAsia Group and Indian conglomerate Tata Group.
The Indian Central Bureau of Investigation (CBI) is currently investigating AirAsia India and AirAsia Group CEO and co-founder, Tony Fernandes, alongside other executives. The CBI alleges Fernandes and his airline breached regulations to ease the airline's operations, including obtaining an air operator’s certificate (AOC) faster than usual.
New Delhi-based CBI is alleging that public servants, including at the Ministry of Civil Aviation, and others “entered into a conspiracy” with a director at AirAsia India, Tony Fernandes and others with the intent of helping AirAsia India “expedite the approval process and change in aviation policies to suit the company”.
The CBI is further alleging that AirAsia violated Foreign Investment Promotion Board and Foreign Direct Investment structural norms “by giving effective management control to a foreign entity” by making AirAsia India “a de-facto subsidiary indirectly rather than a joint venture”.
The federal police also are accusing the defendants of colluding to remove or amend the 5/20 rule.
