 "Mittu Chandilya")
Mittu Chandilya, AirAsia India managing director and chief executive, is likely to step down twenty months after the launch of the airline, sources said.
Chandilya's contract ends later this month and sources said he is unlikely to extend it. Next month, the airline’s board is expected to decide if he will continue with his responsibilities.
An airline spokesperson did not respond to an email seeking comment. Chandilya, who has been the chief executive since May 2013, has been the face of the airline since its launch. He was elevated to managing director last August. This coincided with the airline's shareholding rejig.
After initial euphoria, the airline has been unable to make its mark and has been dogged by intense competition, slow growth, and continuous losses. The airline has seen several other senior exits earlier last year.
There have been other concerns, too. In December, co-investor Arun Bhatia, who owns 10 per cent in the airline, threatened to go to court against the airline on the grounds that it is controlled by Malaysian shareholders. The airline's chairperson S Ramadorai had then denied strained ties and said there was no violation of any rules by the airline.
AirAsia Malaysia owns 49 per cent in the airline. Tata Sons owns 41 per cent, and Bhatia owns 10 per cent. Tata Sons is expected to raise its stake in the airline and acquire Bhatia's shares, but the deal has not come about so far because of valuation issues. AirAsia India has five Airbus A320s.
It had an India market share of 1.7 per cent in 2015. It started operations in June 2014 and now connects eight destinations. For long, the airline management has indicated it has not expanded operations because of a lack of clarity on civil aviation policy.
