BackAirAsia India starts with a ₹ 26 crore loss
AirAsia India lost `26 crore in quarter ended June and is expected to widen its losses as it expands
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New Delhi: AirAsia India, the joint venture of AirAsia Bhd and Tata Sons Ltd, lost 26 crore in quarter ended June and is expected to widen its losses as it expands, according to consulting firm Capa. AirAsia started its first flights in June this year with a Bangalore-Goa-Chennai operations.
“The AirAsia Group recorded a MYR13.8 million ($4.3 million) loss in 2Q2014 for AirAsia India, which started operating in June-2014 and currently operates three routes with one A320," Capa said in a report on Monday. “Larger losses are expected in 2H2014 and in 2015 as the new airline spools up and faces intense competition from the incumbents."
SpiceJet Ltd announced a 124 crore loss in three months ended June. Jet Airways (India) Ltd lost 217.6 crore in the same period.
In July, AirAsia chief executive officer Mittu Chandilya had said the airline plans to break even in December. Chandilya didn’t reply to an email seeking comments on Monday.
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