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AirAsia Can Spoil Party for Indian Aviation Companies

AirasiaWorld wide aviation sector is deep in red and here we have Kingfisher going down the drain. However nothing has deterred Malaysia-based AirAsia and the Tata Group who are planning to join hands to launch a budget airline in India. Delhi-based businessman Arun Bhatia is also part of the venture.

In order to garner market share AirAsia is going to follow low cost model. It means price war is going to be aggressive. This will impact the profitability calculations of Indigo, GoAir, SpiceJet and Jet Airways. However customers are going to get good fare deals.

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