Air Asia India not going out of business, clarifies TAAI

In a written statement, Air Asia India has clarified with TAAI that they are not going out of business. The statement by Ankur Garg, CCO, Air Asia India, pointed out, “While the current pandemic has severely impacted the aviation sector and AirAsia India is no exception, we have remained adequately capitalized throughout these months by securing the funding from our majority shareholder as and when required.” He further said that they continue to grow their network and are already at ~55% of their pre-COVID capacity and looking to increase to 70% as per the recent relaxed capacity mandate from the government last week. They have also recently added a brand new A320 NEO to their fleet in Oct, adding a 2nd NEO in Nov and will add another 3 aircraft in as many months. Giving another evidence of the financial stability of AirAsia India, Garg reveals that they have been smoothly processing all refunds in the last few months and never forced a conversion of bookings during lockdown to “credit shells”. In the months of Sep-Oct, Air Asia leadership proactively engaged in regional meetings with travel agent partners across the entire country and addressed any questions on refunds, long term growth plans, etc. On the employee front, we have not retrenched any staff and have not done salary cuts for employees earning less than Rs 50,000 per month, and also no delay in salary pay-outs has happened for any month since the pandemic, he informed. Citing these points, Garg said that he hopes that it would dispel any doubts and provide enough confidence in the financial sustainability and growth plans of AirAsia India.