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Publish Date : 20-May-2014

A senior executive said that AirAsia will invest an additional $20 million (Rs 119 crore) in its Indian airline venture this year.

He added that the Malaysian low fare carrier has already invested $10 million in AirAsia India, the executive said. The next round of investment will come in a couple of months.

An investment at this point in time is important for the airline which is shortly likely to begin operations. It gained its flying permit from the country's aviation regulator on May 7, after months of clearing through gruelling safety and capability tests.

The months of waiting with an aircraft and crew on ground meant that its costs kept rising.

The airline is at present spending $30 a minute and will open its balance sheet with a total cost of $5 million on its books as stated by the executive.

The airline's chief executive Mittu Chandilya has said it will offer fare 35% lower than the average fare of its competitor. At the same time, it aims to break even in four months

AirAsia India is a tripartite joint venture of Tata Sons, AirAsia Berhad, and Telestra Tradeplace owned by private investor Arun Bhatia.

AirAsia India was declared on February 19 last year and got the first approval from the FIPB on April 5. It got a no objection certificate from the ministry on October 5. The airline at present has a total of 277 people which comprises 56 pilots, 81 cabin crew and 38 engineers.

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