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NEW DELHI: For Malaysia's no-frills carrier Air Asia Berhad, India and Japan are peripheral markets and it could, at some point, exit its Indian venture with the Tata Group, Credit Suisse said in a report quoting the airline's chief executive Tony Fernandes.

In a 22 June report, Credit Suisse, citing Fernandes, said the ASEAN region is the Malaysian carrier's core market.

"Thus he shared that while currently growing and committed, 'we would never say that we would never exit India'. He shared that they have good partner in Tata and are looking for international license. There has been market share gain in this resumed phase of flying," Credit Suisse said in the report.

"However, Air Asia said that it is not thinking of adding any new planes for a long 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 new plane," it added.

An AirAsia India spokesperson was not immediately available for comments, while a spokesperson of Tata Sons did not offer comments.

AirAsia India, a joint venture between Tata Sons and AirAsia Berhad, reported a 46% load factor and 7.8% market share for May after domestic operations were allowed from 25 May following a two months of grounding of flights because of the covid-19 pandemic. It carried 22,000 passengers during the period.

Market leader IndiGo, which had 50.6% market share in May, registered a 52.6% load factor during the month, ferrying 142,000 passengers during the period above mentioned period.

When contacted, a Tata Sons spokesperson said "no comments ".

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