AirAsia’s India entry with Chennai as its hub of operations has brought cheer to stakeholders. There is great hope of a positive growth trajectory for the various service sectors that have mushroomed around the industry. This is apart from additional revenue that the Airport Authority of India (AAI) might get. On March 26, the Foreign Investment Promotion Board (FIPB) of the Finance Ministry cleared the proposal of Malaysian low-cost carrier AirAsia and TataÂ’s joint venture for a passenger airline in India.
But the airline is yet to get the flying permit and clearances from the Directorate General of Civil Aviation (DGCA.). Flyers, who are set to be one of the biggest beneficiaries of this venture, said that apart from the affordability, the fact that new airlineÂ’s fleet consists of Airbus A-320s is great news.
With some of the existing low cost carriers operating with ATR flights now, the leg space and seat width are always a concern; sometimes we feel claustrophobic. So, AirAsia may be a relief to budget passengers as they may experience comfort even at lesser cost. It will be convenient if they are punctual, unlike some of the other low-cost carriers, say passengers.
The development is also likely to be a shot in the arm for hotels and taxi services. Officials of Fast Track, a taxi service which earns 25 per cent of its revenue from the airport, said they were hopeful of at least five per cent growth in revenue. At least 2,000 to 5,000 company vehicles ply in and out of the airport every day.
With this development, the company may see about five per cent increase. This will rise further if their fleet expands, say the officials. Similarly, the hotels, especially 3-star ones, may see a rise in bookings of up to 10 per cent, the hotel industry expects.
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