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Kerala would likely to be able to reap benefits from the ongoing price war between low-cost aviation companies. The newly proposed joint venture between AirAsia and Tata Group that would commence operations late this year would have destinations in the state in its itinerary.
Suresh Nair, Regional Head of AirAsia, India, said that the airline is going to be a domestic service. We would look at destinations in Kerala to operate from, once we commence our services. Though the airline would cater to the domestic market in the initial period, experts in the aviation sector feel that the company would soon foray into the international market.
At present, for an airline to operate in the international market, the rules stipulate that the company should have operated for a minimum of five years old and have at least 20 aircraft. There are reports that the State-run Air India could get into the fare war initiated by low-cost carriers, including SpiceJet, IndiGo and Jet Airways. Kerala, home to a large expatriate community, would benefit from this, if it were to be a reality.