BY KARTHIKEYAN SUNDARAM, BLOOMBERG
AirAsia Bhd., Southeast Asia’s biggest discount carrier, reported profits in all but one year in the past decade. It’s now entering a market where the industry has lost more than $6.6 billion in five years.
The airline may struggle to post profits in India as high fuel taxes, airport costs and cut-rate competition erode gains from rising travel demand, said Harsh Vardhan, the chairman of Starair Consulting that advises airlines. AirAsia will also have to contend with the nation’s bureaucracy that interferes with pricing of tickets.