Oct 10, 2012

Is Tony Fernandes developing a cold feet on India?


Shortly after Indian government gave the go-ahead for foreign airline investment in Indian airlines on September 14, Air Asia's Tony Fernandes, had tweeted:

“Fantastic news that India has opened up investment to foreign airlines great that Indian government has put people first. Will we be in India. Well, let's see.”


Since then Fernandes has visited India once in his private jet but  refrained from making any  statement. Now he has told a Malaysian news agency that the most crucial area that AirAsia always paid attention before venturing into a new market was keeping its cost down. And he feels that the cost of operating in India are much higher than many developed nations :

"This is the power of AirAsia. Everyone wants us, but the right infrastructure and environment must be there for us to go there (India). The airport tax is already very high and I even heard that they are going to further increase the tax, forcing many airlines to quit from certain destinations"

"It's for that reason AirAsia's medium-and long-haul affiliate, AirAsia X, withdrew from flying to New Delhi and Mumbai"  

Cold feet then?

Pic courtesy - http://www.f1fanatic.co.uk/wp-content/uploads/2010/12/bran_fern_abud_2010-8.jpg
Pti  story - http://ibnlive.in.com/news/airasia-ready-for-india-if-environment-is-right-ceo/299484-7.html


  1. Thats because he did not put his RIGHT foot forward !

  2. Capt. Lumba10 October, 2012

    "He has not developed cold feet but is using cold business sense.He obviously is in the airline business to make money and not for glory or glamour.
    With the high cost of operation in India there is no business case for operating IN India. However,operating TO India is different as the cost of fuel is lower and although airport user fees are still very high yields from good load factors can still make business sense
    For the above same reasons FDI in Aviation will have few, if any, takers until the cost of doing aviation business in India comes down"

  3. No one will jump into the bandwagon of Indian aviation without study and analysis of all factors that will affect its profitability! Give them achance before commenting in such negative way like cold feet! Whether Air Asia or anyone else must think all aspects before coming in!

  4. Hello please send me Air Asia Airlines Customer Care Number, I want to know how to cancel a ticket.