AirAsia India likely to restart operations with 24 aircraft post lockdown

Image
Press Trust of India Mumbai
Last Updated : Apr 22 2020 | 6:38 PM IST

Budget carrier AirAsia India is likely to resume operations with a fleet of 24 planes post lockdown, according to a source.

Amid financial woes, the airline is also unlikely to induct any new aircraft this fiscal.

A joint venture between Tata Sons and Malaysia's AirAsia Berhad, the Bengaluru-based airline has 29 Airbus A320 planes in the fleet, catering to 21 domestic destinations.

All domestic and international commercial passenger flight operations have been suspended during the lockdown, which was initially imposed from March 25 to April 14 and thereafter extended till May 3.

Soon after the extended date was announced on April 14, some of the Indian carriers announced that they would recommence flight operations in a phased manner from May 4 and had started taking bookings also.The government later directed them not to do so and wait till further orders on the issue.

"The travel demand is not going to come back any time soon. We are expecting initially it would be the stranded people in different state capitals and cities of the country, who have been waiting to return to their original places, will be rushing to the airport whenever lockdown ends and air services are allowed to operate," said a source from AirAsia India.

Since it would take a lot of time for even the domestic traffic to return to normal, carrying out operations with the entire fleet will not be financially prudent, he said.

"Considering these factors, we are looking to put only 24 aircraft in service with reduced frequencies when we restart operations after the lockdown. And once the traffic starts picking up, we will also ramp up both the fleet and the services," the source said.

AirAsia India spokesperson refused to comment on PTI queries.

According to a recent survey by global aviation and aerospace consultancy ICF, the aviation industry may take six months to two years to recover from the severe blow dealt by the coronavirus pandemic.

Last week, AirAsia India had said, " we look forward to resuming our operations soon, once we receive the appropriate approvals. Preparations are underway to implement and strictly adhere to the social distancing guidelines laid out by the government across all facets of our operations as the safety and security of our guests and crew is our top priority."
The source also said the airline is unlikely to induct any new aircraft this fiscal owing to an expected low demand, "if market dynamics changes and there is any sudden spurt in domestic traffic then it would prefer subleasing from the parent AirAsia Berhad than going for fresh deliveries."

Disclaimer: No Business Standard Journalist was involved in creation of this content

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Apr 22 2020 | 6:38 PM IST

Next Story