AirAsia, one of the largest low-cost airlines in the region is set to commence operations in Colombo. According to reports, the airline’s proposal was presented to the cabinet through a cabinet paper (MNPEA/2017/149) jointly by the Ministry of National Policies and Economic Affairs and the Ministry of Tourism Development and Christian Affairs. Reliable sources say the proposal has now been granted cabinet approval.
The airline has also agreed to partner with a local company while carrying on the business as a joint investment sources said adding that the business will operate under a low-cost business model. Accordingly, the airline operations in Sri Lanka will include new single air crafts with a large number of seats and provide a no-frills service to its passengers.
While the airline has submitted a five-year proposal for operations in Sri Lanka the airline is set to operate in 27 new air routes not covered by other airlines currently operative in the country.
According to the proposal, initially, flights will commence from the key strategic hubs of Colombo, Jaffna and Hambantota to India (301 flight weeks or 56 percent of seat capacity) thereafter will operate flights to other South Asian countries (105 flight weeks or 19 percent of seat capacity). Flights also will commence to China and ASEAN countries (84 flight weeks or 16 percent of seat capacity) moving forward, and finally will also operate flights to Middle Eastern as well as African countries (49 flight weeks or 9 percent of seat capacity).
Revealing information on the proposal a government source said the arrival of AirAsia will help the government's Tourism Strategic Plan for 2020 through developing the airline industry in Sri Lanka.
Air Asia currently operates in 26 countries while serving passengers in 220 routes and 110 destinations. The company has a fleet of 220 flights and is considered to be one of the best low-cost airlines in the world. In fact, the company has won the Skytrax award 9 times. This award is given annually to the best low-cost airline in the world.