AirAsia to launch direct flights from Bangkok to New Delhi, Mumbai, Kolkata and Amritsar

AirAsia, the low-cost airline based in Malaysia, has announced plans to expand its presence in India by adding 4 direct flights that connect Bangkok with the Indian cities of New Delhi, Mumbai, Kolkata and Amritsar from May 2010.

While the flights to New Delhi and Mumbai will be operated by Air Asia X, the low-fare, long-haul carrier of AirAsia using new Airbus A330 aircraft, the services to  Kolkata and Amritsar will be operated by AirAsia, the short-haul airline, with Airbus A320 planes, according to Kathleen Tan, regional head (commercial) of AirAsia.

The airline will offer fares starting at Rs 4,500 one-way between Bangkok and Mumbai.

In January 2010, AirAsia had introduced 6 direct flights to major metros in India – from Kuala Lumpur to New Delhi, Mumbai, Bangalore, Hyderabad and Chennai; and from Penang to Chennai.

Currently, AirAsia, the biggest budget airline in Asia, operates a total of 148 flights a week from India. This number will rise to 156 flights a week after the introduction of the 4 new flights between the Indian cities and Bangkok.

Kathleen Tan said that AirAsia – which follows the model of other low-cost carriers such as Ryanair, Southwest Airlines, Jetstar Airways, and Tiger Airways in charging extra fees for baggage – is considering earning revenues through charging passengers for assigned seating, food, hotel bookings, and car booking.

For baggage, AirAsia X charges Rs 450-Rs 1,800 for 15 kilogrammes-30 kilogrammes, which the passenger can pay while booking the ticket. AirAsia charges Rs 290-Rs 724 for baggage weighing 15 kilogrammes-30 kilogrammes.

Kathleen Tan told reporters in Mumbai, India, that AirAsia will offer, from April 2010, direct debit facility to Indian passengers who book ticket through debit cards of State Bank of India and ICICI Bank. AirAsia will shortly accept bookings made by Indian passengers using Visa, American Express and Mastercard, she added.

AirAsia, according to Kathleen Tan, is looking at setting up company-owned direct channel for sales and marketing in India.

She said AirAsia currently operates flights with a load factor of 70%-75%, on an average, on all Indian routes. The airline expects to achieve over 80% load factor, thanks to attractive pricing, for services it operates out of India.

On the distribution channels to reach end-consumers, Kathleen Tan said that AirAsia relies on technology in order to cuts costs and offer lower fares to the end-consumers. The main focus of AirAsia, she explained, is the online distribution channel for all sectors where the airline operates, since 70% of the bookings for AirAsia are made online.