Malaysian budget carrier AirAsia Bhd is targeting an annual increase of 15-20% in its India revenue, in line with its global outlook, through an increased focus on flights to and from south India that are less than four hours long.

The airline is also open to starting domestic operations either through a subsidiary or a stake in an Indian airline when local regulations permit such moves by a foreign airline.

The carrier will seek additional sources to boost supplementary income to cope with the pressures of higher jet fuel costs, the European economic downturn and higher airport and other taxes, Tassapon Bijleveld, chief executive of AirAsia’s Thai subsidiary, said to Mint reporter Anupama Chandrasekaran.

In India, the parent company AirAsia operates flights to Kuala Lumpur, while its Thai subsidiary handles the Bangkok flights. 

“We have to look at more ways to increase revenues besides charging for baggage, insurance, merchandise, tour packages, hotels and the duty-free goods sold on board,” said Bijleveld, who spoke after a Chennai press conference on Friday evening. “Each of them is very small, but when you put them together, it adds up to 15-20% of revenue and comes at no additional cost,” he added.

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