AirAsia expects to break even with 57% occupancy

Mumbai: AirAsia India would require 56-57 per cent load factor to break even in India, the Group’s Chief Executive, Tony Fernandes, said on Monday. “Once we have seven to eight aircraft operational in India, we will reach a stable cost structure and, at that level, 57 per cent occupancy will help us break even,” he said.
In line with its aggressive expansion strategy, AirAsia India plans to start operations with three aircraft and add 10 every year.
Following a strict cost structure across its network in India, the airline will focus on unconventional routes in the South.
Giving an example, Fernandes said there was a lot of scepticism when Air Asia started its services from Tiruchi to Kuala Lumpur. “Now we have launched three daily flights in the same sector. We are also starting a daily service from Madurai (100 km away from Tiruchi) to KL,” he pointed out.
01/07/13 Business Line