AirAsia promises 'dramatically' low fares in India; expects launch in Mar-Apr

January 23, 2014

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Davos, Jan 23: Hopeful of launching flights in India in next 2-3 months, Air Asia chief Tony Fernandes says that the airline would introduce 'dramatically' low fares in the country, which would be cheapest in the market and take air travel to masses.

Fernandes, who is here for World Economic Forum (WEF) Annual Meeting, said that AirAsia India is fully prepared from its side for the launch and is waiting for final government approvals that should come soon and help it begin flights by March-April this year.

"I think we are coming very close and March-April should be time when we should begin the India operations," the Malaysia-based airline major AirAsia's Chief Executive Officer said in an interview here.

AirAsia has partnered with Tata group and Arun Bhatia-led Telstra Tradeplace for AirAsia India, which is looking to run low-cost passenger airline service in the country.

Fernandes said that all preparatory work has been completed by the company for launch of its flights and it is just waiting to "open the sale" of the tickets.

Known to have revolutionised the airline market in Malaysia and some other Asian countries through low-cost airfares, AirAsia chief said that the strategy for India would be to offer "cheapest" possible tickets.

"We have to be the cheapest and stimulate the market. We have to allow the common man to fly. That is my message to the Indian government and the state governments that flying is not only for the rich," he said.

"What I want to say is that flying is a great economic driver and to get more people flying, we have to reduce the costs. This may be hard for the state governments, because aviation fuel tax is a good cash cow, but if you see in medium to long term, the benefits of flying are huge. You can see the success in Malaysia, Thailand, Indonesia and many other places and we can do the same in India as well," Fernandes said.

High taxes and other costs have been a major reason for AirAsia thinking to start its domestic flights in India with Chennai as a hub and not the bigger centres like Delhi and Mumbai.

Expressing optimism, Fernandes said that some state governments are open to the idea of lowering air travel costs and more states are looking at this.

When asked whether people should expect dramatically low prices at the time of launch of flights in India, which AirAsia has done in other markets, Fernandes replied in affirmative.

"Expect that from us. We are dramatic when it comes to pricing and we will do the same in India," Fernandes said.

Asked whether he was also optimistic about AirAsia India soon going pan-India with its flight operations, Fernandes said, "Give me some time. India is like a continent. It is not one state. So, give me some time. I don't want to lie and say that we would be pan-India by so and so date."

On whether he intended to take AirAsia India to pan-India level, he said, "Of course, we want to. If you want to go to India, you would want to go everywhere in India. But it will happen in due course as we must do it properly. But patience is important as many have tried to do it too fast and they have failed."

Asked about Tata group forming another airline venture with Singapore Airlines, in addition to the one with AirAsia, Fernandes said, "I am sure there will be some crossover (of business), but Tata-SIA would focus more on full service carrier market, while AirAsia would create an entirely new category for itself."

He also said that existing low-cost carriers in India were kind of in both categories -- budget and full service airline services -- and some of them have started going into higher ends of markets by putting in business class seats and offering certain upmarket services.

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coastaldigest.com news network
October 8,2024

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Mangaluru, Oct 8: The city of Mangaluru mourns the loss of M Ahmed, a pioneering businessman, philanthropist, and the Founder Chairman of the AK Group. He passed away on Tuesday morning at the age of 76, leaving behind a legacy that spans decades of service, innovation, and community building.

M Ahmed, also fondly known as A K Ahmed, was a man of humble beginnings who grew into one of the most respected entrepreneurs in South India. He founded the AK Group in 1984, which has since flourished into a multi-faceted business empire. The company, which began as a small frame manufacturing unit, now encompasses a wide range of industries, including plywood, formaldehyde, particle boards, fire-rated products, and more. AK Group's growth extended beyond India, with manufacturing units established in Myanmar and Vietnam.

What began with 18 employees in 1984 has today expanded to provide employment to approximately 3,000 people in India and 400 abroad. M Ahmed’s dedication and vision were instrumental in transforming the company into a market leader, recognized for its high-quality products and innovation. AK Plywood is now one of India’s top plywood manufacturers, and the largest in South India. The company was Karnataka’s first plywood manufacturer to receive ISO certification and has garnered prestigious awards, including the Rising Stars Power Brands Award in London (2017) and the Best Manufacturer Award from MSME Karnataka (2018).

Ahmed’s business success was deeply rooted in values instilled in him during his early years. He worked alongside his father, the late Abdul Khader Moopa, loading sawn timber, and it was from these humble beginnings that he developed his work ethic, pioneering spirit, and respect for time—values that remained the cornerstone of his remarkable career.

His foresight was evident when he recognized the potential of timber from Perumbavoor, Kerala, for plywood and blockboards at a time when it was merely being used as firewood. This strategic move led to the establishment of one of the first frame manufacturing and peeling units there, and soon after, Ahmed launched his own company in Mangaluru, swiftly earning national and international recognition.

Beyond plywood, the AK Group has diversified into multiple industries, including marine food, pharmaceuticals, construction materials, hypermarkets in India and the UAE, and food industries in Indonesia. Under Ahmed’s leadership, the company’s reach expanded, ensuring its position as a formidable player in various sectors.

Ahmed was not only an extraordinary businessman but also a deeply compassionate individual, dedicated to social and religious causes. He served as the founding president of the managing committee of Ihsan Masjid in Mangaluru and established the Highland Educational and Cultural Centre. His philanthropic efforts were as vast as his business ventures, benefiting countless communities both in India and abroad.

His kindness, simplicity, and punctuality were hallmarks of his character. Those who knew him admired his unyielding commitment to excellence, as well as his warmth and generosity. M Ahmed is survived by his wife, three daughters, and four sons, who continue his legacy of philanthropy and social service.

As news of his passing spread, tributes poured in from all sectors of society. Social, religious, and political leaders in Mangaluru expressed their deep sorrow over the loss of a man who dedicated his life to improving the lives of others.

M Ahmed’s journey from humble beginnings to massive success will continue to inspire generations. His life serves as a testament to the power of vision, perseverance, and, above all, integrity.

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