AirAsia Group Bhd group chief executive officer (CEO) Tan Sri Tony Fernandes hinted that the budget airline may exit its India joint venture (JV) because India is deemed a peripheral market for the group.
“We would never say that we would never exit India,” Fernandes was quoted as saying in a Credit Suisse report.
The Asean region is a core market for the airline, while India and Japan are peripheral markets, Fernandes said during a global call arranged by Credit Suisse.
He shared that they have a good partner in Tata and are looking for an international licence.
There has been market share gain in this resumed phase of flying (from 25 May),” Credit Suisse said in a report on 22 June.
“However, Air Asia said that it is not thinking of adding any new planes for a quite a while. Air Asia seemed to believe that oil prices can stay low for a long while (a lot of oil) and, thus, there are limited gains from a 15% fuel saving in a low oil price environment,” the report said.
“Air Asia seemed willing to take second-hand capacity if need be rather than go for a new plane.”
According to AirAsia Group’s annual report, the group owns a 49% stake in Airasia India.
News reports today cited the Credit Suisse report yesterday, which quoted Fernandes as saying during a global conference call organised by Credit Suisse that AirAsia had a good partner in Tata and they were looking for an international licence.
It was reported that an AirAsia India spokesperson was not available for comments.