India can be the hub for Europe, Africa: Tony Fernandes

Low cost airline AirAsia has said that going forward India can be a hub for Europe and Africa for the airline.

In an interview to Gulf News, the Malaysian-based airline's Group Chief Executive Tony Fernandes said, 'I see India in a different way than most people see India. There is no reason why India cannot be a hub into Europe and Africa'.

He went on to say that the airline will first focus on building its domestic network. AirAsia India has a domestic operator's licence and is not allowed to fly overseas from India.

Fernandes said the airline will feed traffic into India from the airline's hubs in Malaysia, Indonesia and Thailand.

AirAsia India is a joint venture between AirAsia, Tata Sons Limited and Arun Bhatia of Telestra Tradeplace Pvt Ltd. While Tata Sons has a 30% stake in the venture, AirAsia owns 49% and Telestra Tradeplace holds the remaining. The $30 million venture was the first after FDI norms in the aviation segment were changed. Subsequently, the Tata Group announced a tie-up with Singapore Airlines for a full service airline.

In June this year, AirAsia India launched its first domestic flight from Bangalore's Kempegowda International Airport. The airline has said that Bangalore will be a hub for expanding to more Indian cities.

Commenting on the domestic market, Fernandes said that the focus will be on being a big player on big routes like Mumbai (airline said it will start flying to the city from early 2015) and Delhi. The airline is also looking at cities in the North East. AirAsia India currently operates flights from Bengaluru to Chennai/Kochi/Goa/Jaipur/Chandigarh and vice versa.

"It's more about frequency on less routes," he said.

On the number of aircraft the Indian venture will have, he said, "I hope in the not too distant future to have 20 planes." By end of 2014, the airline would have six A320s.

Commenting on competition, he said, "the entire [Indian] airline industry has kind of ganged up on us. It means that they know we can do something," said Fernandes in the interview.