 "I would rather deliver than spend hours talking about growth: AirAsia's Fernandes")
AirAsia’s joint venture with the Tatas in India will start its operations soon. Talking to _CNBC-TV18’_s Menaka Doshi, on the sidelines of World Economic Forum in Davos , AirAsia CEO Tony Fernandes expressed confidence that AirAsia’s low cost model will work in India despite various challenges. He is optimistic about changing travel mood in India and sees this as good time to enter Indian market.
Where are you in India in terms of the government allowing you to get on and do business? Your license approvals have not fully come through as yet.
[caption id=“attachment_925649” align=“alignleft” width=“380”]  AirAsia chief Tony Fernandes. Reuters[/caption]
A: We are the first foreign airline that has ever been allowed to have got this far in India. There are many that want us. There are a few that do not want us. So the process goes on. We have recently had the Directorate General of Civil Aviation (DGCA) approving all our training facilities. We are ready to go. I still believe we can launch in March-April time. We are very, very optimistic about changing travel mood and keeping economic growth in India through our low fares.
Q: Have you started drawing up a blueprint of what your marketing, branding, positioning strategy, fare strategy will be in India?
A: It has gone from blue to faded blue. It has been there for a while. The extra time has actually caused us to learn a little bit more, revamp some of the initial thoughts that we were going to have and our confidence grows by the day. We are very excited. It is great time to go into India. Most people are pessimistic, I am very optimistic. I go there. People want to travel. There is a migratory workforce. There is a huge tourism opportunity which many have avoided, both in internal tourism and external tourism. When I say internal I mean local domestic tourism and international tourism. I remain very bullish and patient. I am a man that waited seven years for Kuala Lumpur-Singapore, so time is on my side and I believe it is only a matter of weeks.
Q: The last aviation entrepreneur who said that in India was Captain Gopinath of Deccan. Unfortunately Deccan did not do very well and the millions that he was hoping would travel because of which he caused this big fare spiral downwards did not workout for him profitability-wise. What sets you apart?
A: To do low fares you have to have low cost and if you do not have low cost you cannot be low fares. It is a simple economic theory.
Q: It is well known in India that the fuel cost, the airport costs; all of those are fixed costs. So how are you going to work on low cost? A: It was well known in Malaysia before, Thailand, Indonesia that we have been able to do it. So watch this space and see whether my words can turn into action. Talk is cheap. Action is more important. I would rather deliver than spend hours and hours talking about where we are going to grow. We feel relatively optimistic that we can do something special in India.
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