In India, many actors are affected by chaos and pain, but at least one association, Air Asia India, is wearing out even before the pandemic, now at a breaking point, says Anjuli Bhargava.
In India, many actors are mired in chaos and pain, but at least one partnership, Air Asia India, is wearing out even before the pandemic and is now at a breaking point.
In recent weeks, conflicting media reports have emerged about how Tatas needs to sell his stake and leave, followed largely by reports that Malaysian wife Air Asia Berhard will resign.
The fact is that Air Asia India is now a failure (neither aspect braishly acknowledges it) and looks like an unwanted child, without any of the parents willing to take full responsibility.
In 2014, Air Asia Berhard President Tony Fernandes could have sold a dream to Ratan Tata, then president of Tata Sons, but in six years the dream has unfolded.
Most argued that they would pay everything, including 2 rupees, as Ajay Singh did for Kalanithi Maran’s stake in SpiceJet in 2014, because the joint venture has accumulated losses, many liabilities and demands that giant capital injections remain relevant.
All of this at a time when aviation is at one of its lowest moments in history and the economics of airlines is probably darker than ever.
“If someone is willing to pay Fernandes 550 million rupees for their 49% on the current stage, they’ll just pick it up,” said one industry player.
He says it’s almost impossible to locate this child’s adoptive parents in the surrounding area and wouldn’t settle for that, even if he was given a loose rhythm on a tray.
With the exception of these two countries, none of Air Asia India’s incursions into the region can be described as an unequivocal success.
First, comparisons with Malaysia are not supported much, as it is the territory of Fernandes’ house and he is able to manage government policy and the surrounding area, as do Jet Airways founder Naresh Goyal in India, to his advantage, as well as being a beginner.
When Air Asia Berhard began, there was virtually no serious festival in Malaysia and Fernandes, which had bought the lossless airline from its Malaysian owner for a token ringitt in 2001, able to offer a new product at the right price. aim to capture market component.
He was young and agile. In addition, Malaysian Airlines, the national airline, was grappling with the same old disorders suffered by domestic airlines and was much more powerful and unstable. “It was a bit like Jet Airways facing Indian Airlines at first,” says an industry analyst.
He was temporarily able to occupy an empty area (the country’s first cheap airline) and a strong spouse (then Prime Minister Thaksin Shinawatra) helped him.
The competition was virtually non-existent with only the state-owned Thai Airways and a very small well-run Bangkok Airways store in the fray.
Thai Air Asia has discovered its niche and is now one of the country’s dominant players. It has contributed to the profitability of its parent company over the years.
But in Indonesia (where Lion Air is the most important player) and the Philippines (CEBU Pacific is dominant), Air Asia Berhard remains insignificant.
Lion Air has, in fact, brought Air Asia Berhard to its home country with its subsidiary Malindo and more to Thailand with Thai Lion.
In Indonesia, Air Asia Indonesia is in a position than Air Asia India is on IndiGo in India: more a boring fly to weigh than something to notice.
“Apart from its own base, only in Thailand, where it had the merit of the first to arrive, Air Asia Berhard succeeded. In all other markets, its functionality has been poor,” says an industry source familiar with the region.
Also in India, Air Asia India entered in 2014 when a festival was already intense and the opportunity to manage the limited environment despite a tough partner.
This, combined with a series of bad decisions, from the selection of CEOs to un fulfilled routes, has plunged the airline into today’s open abyss. Controversies have also hampered the company from the start.
Tony Fernandes and Ratan Tata face the sad prospect of seeing their unusual sleep undone.
Presentation of the report: Rajesh Alva / Rediff.com.