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AirAsia May Eventually Exit India JV

: Jun 24, 2020 - : 5:43 am

For Malaysia’s low cost carrier Air Asia, India and Japan are peripheral markets and it could, at some point, exit its Indian venture with the Tata Group, a Credit Suisse report quoted the airline’s chief executive Tony Fernandes.

Speaking during a global call organised by Credit Suisse, Fernandes shared that they have a good partner in Tata and are looking for an international licence and there has been market share gain in the resumed phase of flying (from 25 May). However, Air Asia is not thinking of adding any new planes for a quite a while.

“Air Asia seemed to believe that oil prices can stay low for a long while (a lot of oil) and, thus, there are limited gains from a 15 per cent fuel saving in a low oil price environment,” the report said. “Air Asia seemed willing to take second-hand capacity if need be rather than go for a new plane.”

AirAsia India is a joint venture between Tata Sons and AirAsia Berhad. It has reported 46 per cent load factor and 7.8 per cent market share in May, after domestic operations resumed on 25 May.

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