Mumbais travel trade "excited" about AirAsias India Venture

The travel trade in Mumbai is "generally excited" about AirAsia's venture into the budget carrier market in India, through a joint venture with Tatas.

"I have been in touch with many other tour and travel operators in Mumbai and other cities in Maharashtra state, and can say, in general terms, that we are excited about the new joint venture," a leading Mumbai-based travel and tour operator told Bernama.

He, however, insisted on anonymity because of his "close business ties" with various Southeast Asian countries, including Malaysia.

AirAsia (India) Pte Ltd would be the first low cost carrier to be allowed to operate in India's domestic market which had previously been closed to foreign participation.

Though AirAsia has yet to state the domestic routes it would be servicing, many Indian travel agents are of the view, that the new airline will fly to low-cost cities and airports that are not heavily used by other carriers.

"AirAsia's arrival will also provide a strong growth impetus to traffic between India and Malaysia," the travel operator said.

Other airlines that operate in India's domestic sector and serve as competitors to AirAsia are Jet Airways, Spicejet, Indigo, Go Air and the national carrier, Air India.

The quick decision to approve the AirAsia venture has surprised many Indian aviation experts, who say that this is "uncharacteristic" of the Indian bureaucracy, which can generally take a much longer period for processing such applications.