Asian budget airline king Tony Fernandes may face his toughest fight yet in India's hyper-competitive aviation market where existing players are struggling to make a profit.
NEW DELHI: Asian budget airline king Tony Fernandes may face his toughest fight yet in India's hyper-competitive aviation market where existing players are struggling to make a profit, analysts said.
The former music industry executive, who resurrected near-defunct Malaysia-based AirAsia in 2001 and turned it into one of the industry's biggest success stories, said last week he wants his planned new Indian carrier to take off in October.
In a whistle-stop Indian visit, the 49-year-old Malaysian, a household name in much of Asia, declared he wanted to create a new market for cheap air travel in the country of 1.2 billion -- much as he has done in Southeast Asia.
"No driver who has ever driven me in India has ever been on a plane -- I want to change that," Fernandes, sporting his trademark red AirAsia cap, told reporters in New Delhi, promising "the lowest possible fares".
"Flying is not just for the rich, it should be for everyone," the Formula One racing team owner said.
"We transformed the lives of Malaysians and Indonesians as well. Now maids are going home for the weekends. We want to do the same thing here."
Analysts warned Fernandes could be in for a turbulent ride in India's skies where low-cost carriers already dominate with a near 65-per cent market share.
channelnewsasia
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