AirAsia contests IndiGo for flights to India
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AirAsia plans to boost flights to India, paving the way for a contest with IndiGo after the two low-cost airlines placed record orders for Airbus planes at the Paris airshow last week. According to an Economic Times report, AirAsia would use its Bangkok hub as the focus for its Indian expansion, Chief Executive Officer Tony Fernandes had said in an interview last week.AirAsia has ordered 200 A320neo planes. IndiGo has confirmed a deal for 180 A320s and is set to begin overseas flights, including to Bangkok, in September. Thai AirAsia Co will likely boost its fleet to as many as 70 planes from 20 to support expansion in India and northern China, Tassapon Bijleveld, the unit’s CEO, was quoted saying.AirAsia, the region’s biggest budget carrier, is targeting India and China as its growth areasIt will target India and northern China from Bangkok because the city is closer to these markets than Kuala Lumpur, its home base, Fernandes had said. That would help keep flight times under three hours, the company’s preferred model.The Thai unit, which now flies to Kolkata and New Delhi, may add as many as six destinations in India, Tassapon had said. It would also boost its China network by a similar number.Right now, its only destinations in China are Guangzhou and Shenzhen. It also flies to cities in Southeast Asia from Bangkok. The carrier will receive its A320neo planes, worth US$18 billion at list prices, in the 10 years starting 2016.
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