The Indian venture of AirAsia 5099.KU -0.39% Bhd will begin commercial flights from June 12, the chief executive of the Malaysian carrier said Thursday.
AirAsia India Pvt. would start selling tickets from Friday, Tony Fernandes said, according to a post on his official Twitter account.
AirAsia India, which got the license to start operations from India's aviation regulator in May, is 49% owned by AirAsia Bhd. Tata Sons Ltd.--which controls diversified Tata Group—owns 30% while India's Telestra Tradeplace Pvt. holds the remaining 21% stake.
The entry of AirAsia in the Indian aviation market would intensify competition and could weaken further the financial health of existing airlines, most of which have been making losses due to a host of factors particularly high operating costs.
Mittu Chandilya, the chief executive of AirAsia India, told The Wall Street Journal earlier this month that the new carrier would try to undercut its competitors to get new customers.
The Chennai-based airline plans to offer fares lower than its competitors by keeping a tight check on costs and would fly to most cities across India. But it would initially skip Mumbai due to what it calls inadequate airport infrastructure in the country's financial hub.
The airline would aim to have a fleet of between 28 and 30 leased, Airbus A320 single-aisle planes by December 2015, Mr. Chandilya added.
The entry of AirAsia follows the relaxation of rules by India in the aviation sector. The South Asian country in September 2012 allowed foreign carriers to own stakes of up to 49% in local airlines.
Since the rules were loosened, Tata Sons formed a separate pact with Singapore Airlines Ltd. to start a full-service carrier. Meanwhile, Jet Airways (India) Ltd., the nation's second-biggest carrier, has sold a 24% stake to Abu Dhabi's Etihad Airways
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