The civil aviation ministry will hold preliminary discussions with Malaysia on Thursday to enhance bilateral seat entitlement between two states.
"We operate four times a week between Delhi and Kuala Lumpur and would like to operate daily flights to Delhi. Mumbai is another potential destination," said Benyamin Ismail, chief executive officer of AirAsiaX, the long haul arm of AirAsia Group.
AirAsia X resumed service to Delhi last month after pulling out of the country earlier citing high airport charges.
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Malaysian carriers have exhausted their quota of seat entitlements and are demanding additional traffic rights to India. "There will be preliminary discussions on Thursday," Ismail said.
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Civil aviation ministry officials confirmed talks will be held with Malaysian government officials but added no agreement will be signed on Thursday.
Dubai-based Emirates is also seeking additional traffic rights to India as it has exhausted 65,000 seats entitled to the emirate.
Emirates is the largest foreign airline operating to India. "Discussions have been going on for some time between Indian and Dubai government but there is nothing concrete at the moment. We are keen to get maximum number of seats and have big plans for India," said Ahmed Khoory, Emirates’ Senior Vice President, Commercial Operations- West Asia and Indian Ocean.