AirAsia focuses on expanding connectivity in India, offering affordable, high-quality travel options.
New Delhi: Paul Carroll, the Chief Commercial Officer of AirAsia Aviation Group, shared his perspectives on the dynamic landscape of the Indian aviation market. He discussed the rapid growth driven by an expanding middle class, and increasing connectivity to Tier 2 and Tier 3 cities.
Speaking to The Sunday Guardian via email, Carroll outlined AirAsia’s strategies to adapt to the rising demand for low-cost travel, the importance of regional connectivity initiatives like the UDAN scheme, and the airline’s commitment to enhancing passenger experience while maintaining affordability.
Carroll also outlined AirAsia’s future expansion plans in India, emphasising the significance of Indian travellers in the airline’s growth strategy and the potential for long-haul low-cost travel between Malaysia and India.
Here are the excerpts from the interview:
Q: What is your assessment of the current state of the Indian aviation market? What trends do you foresee in the coming years?
A: Undoubtedly, India is one of the fastest-growing aviation markets globally, driven mostly by the expanding middle class and increasing connectivity across Tier 2 and Tier 3 cities. India remains one of AirAsia’s most frequented countries. Demand for international air travel remains robust, and we’re seeing a significant increase in guests’ preference for affordable and efficient travel options, particularly since the announcement of visa-free initiatives for Indian nationals to Malaysia and Thailand.
In terms of trends, we foresee a continued rise in travellers who seek value-added fares and more accessible travel. Additionally, the growing importance of regional connectivity will be pivotal, as more people travel to smaller cities and underserved destinations across Asia and beyond.
As Asia’s diverse landscapes and cultures become more accessible, more exciting destinations are likely to emerge as sought-after travel hotspots. Hopefully, this will also lead to a deeper appreciation for cultural exchange, which will result in more tourism opportunities. Gone are the days when individuals relied solely on direct routes to get them to their destinations; now, anyone can connect to just about anywhere globally, and options for connectivity are available easily.
For the last 23 years, AirAsia has been connecting millions of guests yearly via its Fly-Thru services through its vast network spanning 130 destinations, with plans to expand the network across other continents.
Q: How do you see the growth of low-cost carriers in India, and how does AirAsia plan to adapt to this growing market?
A: There has certainly been a growing demand for affordable travel options, creating a significant opportunity for low-cost carriers to capture a larger share of the market.
AirAsia has long been a pioneer in the LCC model in Asia, and we are fully committed to catering to this growing demand in India. To adapt to the ever-evolving market, our strategy is first to focus on expanding our presence and growing our footprint to not just major hubs in India, but smaller and lesser known destinations that hold tourism potential. Our aim is to facilitate greater connectivity from India to neighbouring countries across Asia and Australia for both business and leisure travellers.
That being said, low-cost travel doesn’t translate to low quality. We also prioritise delivering a fully seamless travel experience for our guests through digital innovations via our one-stop platform, the AirAsia MOVE app, our ancillary offerings, customer centric features, and much more.
Q: With the government’s push for regional connectivity and the UDAN scheme, how do you plan to integrate into this network?
A: We’ve always welcomed any initiative to boost tourism and enhance the travel industry, and look forward to working together with our government stakeholders on how we can further facilitate seamless air connectivity in India.
Q:How does the increasing demand for air travel in Tier 2 and Tier 3 cities in India affect your expansion plans?
A: Our expansion plans in India aim to ensure our connectivity is spread vastly across the country, and certainly, Tier 2 and Tier 3 cities are a significant driver for this. The growing working-class population and increased spending power have contributed to the increase in air travel from smaller cities.
For AirAsia, this is a tremendous opportunity to enhance our footprint in these regions. We currently operate frequent weekly flights to several of these cities, including Jaipur, Ahmedabad, and Visakhapatnam, with more in the works as part of our strategic expansion this year.
Our low-cost model and affordable fares remain a crucial factor in enabling international travel for people in these cities, a dream that was once far-fetched for many. Not only that, we are continuously improving our digital platforms, making it easier for our guests from smaller cities to book flights, check in and manage their ancillary add-ons. This tech-driven approach is crucial to enhancing convenience and accessibility for travellers in Tier 2 and Tier 3 cities.
Q:What are AirAsia’s specific plans for expanding its footprint in the Indian market over the next 5 to 10 years?
A: It’s a continuous journey of expansion for us in the Indian aviation market, and we’re excited to focus on our international network to and from the country. This includes adding more routes to key markets across Southeast Asia, where demand for leisure and business travel is really picking up.
In 2024, we celebrated pivotal milestones for our connectivity to India, with eight new and resumed route launches. We also made history with the announcement of flights to Sri Vijaya Puram (formerly known as Port Blair), making AirAsia the sole airline to operate international flights to the island in ASEAN, and we are also the only airline in Malaysia to provide direct connectivity to Jaipur.
To support our growing operations, we will continue to expand and modernise our fleet by adding more fuel-efficient aircrafts. Our long standing partnership with Airbus has allowed us to fully maximise our operations thanks to its advanced and versatile fleet. Last year alone, we welcomed four A321neo aircraft for Malaysia and Thailand, which will be used for flights across the group, including to India and neighbouring countries.
Our goal will remain to offer seamless connections from Indian cities to popular destinations across the AirAsia network, both directly as well as via our Fly-Thru options. With AirAsia, Indian travellers can traverse continents inexpensively -from Singapore to Australia, Kazakhstan, and Kenya-all just a direct flight from our main hub, Kuala Lumpur.
Q: How do you assess the potential for long-haul low-cost travel between Malaysia and India?
A: As with any of our potential routes, extensive market research goes into the thought process before we venture into a new city, including analysing the latest travel trends and load factors for our existing flights.
Our most frequented medium to long-haul flights are our New Delhi and Jaipur to Kuala Lumpur connectivity, both of which record healthy
Q: What role do you see Indian passengers playing in AirAsia’s future growth strategy?
A: Indian travellers play a pivotal role in our future growth plans, and we are proud to have flown more than 3 million Indian nationals in 2024. India is not only one of the fastest-growing aviation markets in the world but also a key focus for our expansion due to its large, youthful, and increasingly mobile population.
Travellers from the country will remain an integral part of our vision of providing affordable, high-quality air travel to international destinations, which is not just limited to Malaysia and Thailand but extends to the rest of Asia and beyond.
Our rapid expansion in India in the last two years has been largely due to the demand of high quality, accessible, and affordable travel by Indian citizens. As a result of this, AirAsia now flies from 15 cities in India to Malaysia and 14 cities to Thailand, respectively.
Indian travellers are highly tech-savvy, and we’ve observed that digital innovation will be one of the crucial factors of AirAsia’s future strategy in India. We will continue to enhance our mobile app, enhance our flight journey and ancillary offerings to meet the expectations of Indian travellers, with the aim of becoming the airline of choice for more of our Indian guests in the years to come.
Q: How do you plan to balance cost-cutting with improving passenger experience on long-haul routes from India?
A: Our utmost priority, after the safety of our crew and guests, has always been to focus on operational efficiencies that do not compromise our guest experience. While we do not offer the services of a full-service airline, this doesn’t equate to a fully no-frills flight journey- particularly on our long-haul flights.
For maximum comfort throughout the flight, our award-winning Premium Flatbed seats, which are equipped on most of our AirAsia X planes, are favoured by many guests in lieu of business or first class. The fully-reclinable seat enables our guests to travel with ease and comfort until they reach their destination.
Apart from that, AirAsia’s wide range of tailor-made ancillary offerings that were curated specifically with the guests’ experience in mind, such as our preferred ‘Hot Seats’, additional baggage allowances, and delicious in-flight food, allow us to cater to different needs.
We will continue to invest in guest-centric service enhancements by focusing on key touchpoints such as check-in, boarding, and customer support. By doing so, we can refine the overall experience without significantly impacting costs. We will also continue our efforts to engage with guests through surveys and direct feedback, thus identifying areas for improvement and making adjustments without the need for excessive cost increases.
Through these initiatives and more, we aim to keep airfares affordable while ensuring a high-quality, enjoyable travel experience for our trusted guests. AirAsia’s approach is to make air travel affordable without sacrificing the aspects that matter most to travellers.
Q: Are there any new routes from India you plan to introduce or explore in the near future? Tell us more about AirAsia’s future plans for India.
A: We will continue evaluating new route opportunities based on market demand and slot availability. Our goal is to support the growth of India’s aviation industry while driving the expansion of the nation’s vibrant tourism sector, fostering connectivity, and creating new opportunities for local communities, travellers and businesses, alike.