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AirAsia India, a joint venture between Tata Sons and Air Asia, took the delivery of its first Airbus A320 on Saturday.
The airline, which has got in-principle approval for importing 10 Airbus A-320 aircraft from the regulator, took delivery of the aircraft at Chennai airport at 09:30 hrs today.
The ferry flight, which was painted in red and white colour carried the wordings 'Now Everyone Can Fly' on one side and the AirAsia logo on the other, recieved a water canon salute at the Chennai airport. Ferry flight is flown from point A to B, with only the cabin crew on board.
The new Airbus A320 is equipped with Sharklets, which is a wing tip device that helps airlines reduce fuel burn and emission. Powered by CFM engines, the aircraft is configured in an all economy layout with 180 seats.
The airline will further take delivery of additional nine A320 aircraft for its Indian operations. AirAsia India’s fleet will be drawn from the 475 A320 family aircraft ordered by the AirAsia Group.
"Airasia India first aircraft arrives in India. In Chennai. Wow. Still a bit to do bit on the final straight," AirAsia's Chief Tony Fernandes tweeted.
Mittu Chandilya, AirAsia India CEO said, “We are fully confident that with our new A320 fleet we will provide the Indian passenger the service and convenient travel options already offered by the AirAsia Group elsewhere in the region."
The development comes at a time when the airline is waiting to receive the air operator permit (AOP), though subjections/ objections stage has been cleared. The permit is needed to start operations.
The airline crossed its final hurdle recently, with the Directorate General of Civil Aviation (DGCA) disposing off all the objections against the proposed low-cost carrier (LCC). The new LCC may get the licence within a fortnight and start flying soon.
The DGCA had received around 20 objections from the Federation of Indian airlines, BJP leader Subramanian Swamy and others. Their plea was that FDI by foreign airlines had been allowed into existing Indian airlines and not for creating JV startups.
Tata Sons has a 30% stake in the JV, AirAsia 49% and the rest by Arun Bhatia of Telestra Tradeplace. The $30-million JV was the first deal after the FDI changes were announced by the government. Post this, Tatas announced a tie-up with Singapore Airlines for forming a full-service airline.
AirAsia India said that its model will be based on low fares. Chandilya in an interview earlier had said that the airline's fares could be 25-30% less than others, while expressing hope that the airline will commence operations in May.
With Chennai as its hub, the airline would give more thrust on connecting Tier-II cities. The airline that operates A320 aircraft plans to add at least six of them in the first year, and 10, on an average, each year henceforth.
The service will commence at a time when the industry is facing pressure. According to CAPA, the start-up carriers are expected to place downward pressure on yields and risks will peak for some carriers in fiscal 2015.
