AirAsia India 2017

AirAsia India 2017

  • Case
  • Teaching Notes
  • Supplementary Resources
Abstract

The AirAsia India 2017 (AAI) case presents the situation faced by Tony Fernandes, the CEO of the AirAsia group of companies, in 2017, when he had to respond to the changes in aviation policy made by the Ministry of Civil Aviation (MCA). As per the changes, an airline operating in India could start its international operations without having five years of domestic flying experience provided it deployed 20 of its aircraft or 20% of the total capacity, whichever was higher, for domestic operations. Operating international flights was more lucrative than domestic routes as the price difference between domestic and international aviation turbine fuel was substantial. By July 2017, AAI had a fleet size of only eleven planes. If Fernandes decided to fly international, he had ...

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