Bizarre Rules, Vested Interests Bog Down India's Aviation: AirAsia Boss
In his no holds barred style, AirAsia group chief executive officer Tan Sri Tony Fernandes has lashed out at the bizarre rules and vested interests which he says have bogged down India's aviation industry.
"It is an incredibly self-interested industry and people have suffered because of it," Fernandes, with his bird's eye view of the industry, said, citing an Indian rule requiring an airline to have operated domestically for five years before being allowed to fly on international routes.
"That doesn't happen anywhere else in the world. So, there are too many people who have vested interests and don't think about what India needs," he told reporters in New Delhi, his last leg of his visit to India to drum up AirAsia's entry into India.
"It's a shame. India has lost many years through vested interests. The Southeast Asian aviation market is so far ahead of India, which is ridiculous amid the pool of talents, economic activities and tourism potential in this country," said Fernandes.
India's aviation industry has been bleeding. Kingfisher, which was once the country's biggest domestic operator, has gone bust. Flag carrier Air India received some US$6 billion in government money to become profitable within a decade.
Last year, the government relaxed Foreign Direct Investment (FDI) rules to allow foreign airlines to be allowed to own up to a 49 per cent stake in local carriers, which was the stepping stone for AirAsia's entry into the market of 1.2 billion people.
India's Tata Group has a 30 per cent stake while Telestra Tradeplace Pvt Ltd owns 21 per cent of AirAsia India (Pvt) Ltd.
Fernandes met several key ministers in New Delhi, including India's Minister of Aviation, Ajit Singh.
"My feedback was seen as very positive," he said.
Anything that is positive for the people should be done, Fernandes said, adding that changes are taking place and it is all about educating and creating awareness of the potential of air travel.
"What we will do, whatever ideas we bring will benefit everybody. I see a vibrant airline. Eventually, I see two or three big players and some niche players," he said, adding competition is good as it brings more choice for consumers.
"I hope to see local low-cost terminals, I hope to see many more routes connected, much more frequency and choice, and many people having jobs.
"No one who has driven me in India since I started coming here for the last 10 to 15 years has ever flown in a plane. In Malaysia it is quite the opposite, every bus driver or taxi driver has flown," he said.
The ultimate dream, he added, is to make AirAsia's 'Now Everyone Can Fly' tagline work in India as well.
Bersama 4/7/13