The carrier has assured the Travel Agents Association of India (TAAI) about its financial sustainability and growth momentum.
Budget airline AirAsia India has assured travel agents about its financial sustainability and plans to expand capacity, according to a communication. The move also comes amid concerns about the airline after Malaysia’s AirAsia Group Berhad earlier this month said it was reviewing its investment in AirAsia India.
The airline — a joint venture between AirAsia Investment Ltd and Tata Sons — has been facing business headwinds. The carrier has assured the Travel Agents Association of India (TAAI) about its financial sustainability and growth momentum.
AirAsia India’s CCO Ankur Garg, Chief of Sales Ajay Kumar Wadhawan and other team members during a virtual meeting with TAAI assured them about the ”stability of the airline” as well as provided insight on its expansion and upcoming schedules, as per the communication from TAAI. The airline has told the association that it continues to grow its network in line with capacity guidance prescribed by the government.
Already the carrier is at 55 percent of pre-COVID-19 capacity and is looking to increase the same to 70 percent, according to the communication. In the current backdrop where the coronavirus pandemic has adversely impacted aviation sector, TAAI has also written to the Ministry of Civil Aviation (MoCA) to monitor all airlines.
”It is very important to constantly stay in communication with airlines to stay abreast of situations. We believe many airlines are struggling to survive due to coronavirus. We just can’t afford another Jet Airways/ Kingfisher. We have also written to MoCA to monitor all airlines,” TAAI President Jyoti Mayal told PTI. On November 17, Malaysia’s AirAsia Group Berhad said it was reviewing its investment in low-cost carrier AirAsia India, which has been ”draining cash” and causing much financial stress.
”Our businesses in Japan and India have been draining cash, causing the Group much financial stress. Cost containment and reducing cash burns remain key priorities evident by the recent closure of AirAsia Japan and an ongoing review of our investment in AirAsia India,” President (Airlines) of AirAsia Group, Bo Lingam had said.