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AirAsia India

In Feb. 2013, with the Indian government allowing a foreign direct investment of up to 49% in airlines, AirAsia Berhad applied to the Indian Foreign Investment Promotion Board (FIPB) seeking approval for commencing its operations in India.In March 2013, AirAsia announced that it would establish a joint venture with Tata Sons and Telestra Tradeplace with Tata Sons representing the airline with two non-executive directors in the board.The airliner planned to operate with the world's lowest unit cost of 1.25 (1.8¢ US) per available seat Kilometre and a passenger break-even load factor of 52%. It also planned to hedge 100% of its fuel requirements for the first three years and to achieve an aircraft turnaround time of 25 minutes

AirAsia planned to begin operations to various tier 2 and tier 3 cities with Chennai International Airport as its main operating base.According to KPMG, the introduction of AirAsia was expected to cause another price war, ultimately leading to an increase in air traffic and some consolidation in the Indian aviation sector.AirAsia initially invested an amount of US$50 million and in preparation for its operations in India, it struck deals with online and offline travel agents.On 3 March 2013, the FIPB officially permitted AirAsia to rent or lease aircraft and to carry cargo on its scheduled flights. The airline then applied for permission to schedule aircraft and transport passengers,which the FIPB accepted on 6 March.

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