AirAsia India CEO Amar Abrol steps down; to move to parent firm’s group headquarters

Updated: May 2, 2018 6:50:26 PM

Amar Abrol, MD and CEO, AirAsia India (AAI), will be moving back to the Air Asia Group's headquarters in Malaysia, the company said in a statement on Wednesday.

Amar Abrol’s stepping down might be a consequence of changes at the headquarters, where founder Tony Fernandes has distanced himself from operations. (PTI File Photo)

By Manisha Singhal

Amar Abrol, MD and CEO, AirAsia India (AAI), will be moving back to the Air Asia Group’s headquarters in Malaysia, the company said in a statement on Wednesday. AirAsia India is the budget airline owned jointly by the Tata Group and Malaysian entrepreneur Tony Fernandes and has a market share of just over 4%. AirAsia India was set up after India opened up the aviation sector to FDI in 2013 and currently flies to 20 destinations with hubs at Bengaluru, Kolkata and Delhi.

Abrol’s successor is expected to be a seasoned aviation professional with international exposure. AirAsia India has added six new routes and three aircraft since January and now commands a fleet size of 18 aircraft. The carrier is likely to add three more aircraft by the end of 2018, taking the tally to 20 and reaching the threshold to launch overseas flights.

AirAsia India posted a net profit of Rs 13.24 crore in Q4CY17, its first since inception on revenues of Rs 518 crore, nearly twice that in Q4CY16. The airline carried 1.47 million passengers in Q1CY18, an increase of 74% year-on-year, information from AirAsia’s parent company showed. However, the load factor, at 83%, was down by 6% YoY, as a result of an 87% increase in capacity.

Abrol’s stepping down, persons familiar with the development said, could be a consequence of the changes at Air Asia’s headquarters, where Tony Fernandes is understood to have distanced himself from operations. Two CEOs, one each to supervise airline and non-airline operations.

The change at AirAsia India comes when it is in a fairly stable stage of operations, unlike in 2016 when Abrol took over from Mittu Chandilya, the first MD and CEO. The airline was then struggling with six aircraft and a barely two percent market share, after all the hype built up around its tag line ‘everyone can fly’.

 

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

FinancialExpress_1x1_Imp_Desktop