AirAsia group plans foray into India

Malaysia's no-frills airline AirAsia group plans to venture into India in a big way, and stresses that some issues with national carrier Malaysia Airlines (MAS) over flights to four major Indian cities need to be addressed.

"Our growth momentum should not be stopped," Fernandes told local daily StarBiz adding that it would like to fly to as many cities as it could. "But not the four (cities) because there are some issues with MAS. The four (cities) may be possible next year," AirAsia group Chief Executive Officer Tony Fernandes has said.

Delhi, Mumbai, Hyderabad and Bangalore are currently serviced by MAS, he added.

The issues concern royalties, free and discounted tickets, which are arrangements MAS has with Air India for these cities.

Fernandes said AirAsia could wait till January 1 to fly into the four cities if it did not want to share costs as the MAS/Air India agreement lapses by December 31, 2009.

AirAsia could ply other routes in the Indian subcontinent this year as long as it get the rights to do so.

"We have been warmly welcomed by the Indian government as they see us bringing tourism and economic benefits. We have always said we will first focus on Malaysia, then South-East Asia and China. Our expansion into India will be this year and the next and India is going to be a big growth story for us."