Budget carrier AirAsia India hopes to make operating profits by the end of March...
Budget carrier AirAsia India hopes to make operating profits by the end of March or early April by which time its hangars would house six aircraft, the airline’s chief executive, Mittu Chandilya, told FE. The airline posted a loss of close to R29 crore for the July-September quarter, its first full quarter of operations since its launch in June, as the carrier registered a relatively low load factor.
Chandilya also said the airline expects to start connections to Delhi around the same time. “We hope to become Ebitda positive after inducting six aircraft in our fleet,” Chandilya said. Ebitda is earnings before interest, tax, depreciation and amortisation.
AirAsia India currently has two aircraft — Airbus A320-200. The airline plans to add two more aircraft taking its fleet size to four by the end of December, before eventually expanding it to six by the end of the first quarter of the calendar year 2015.
AirAsia India is promoted by Malaysian carrier AirAsia Bhd’s founder Tony Fernandes — who owns a 49% stake in the Indian carrier. Tata Sons and entrepreneur Amit Bhatia are the other stakeholders in the Indian venture.
In June, just before the low-cost carrier started operations in India, Fernandes had said AirAsia India would break-even and start posting operational profits from September by minimising costs and carrying more passengers.