AirAsia hunting for a launch partner in India, speaking to Videocon

AirAsia plans to launch an Indian airline with local partnership as the desire to earn share in one of Asia’s biggest aviation markets trumps fears of a hypercompetitive industry full of bureaucratic obstacles.

AirAsia will hold 49% in the venture…it has broached the issue with Videocon Group and the talks are at a preliminary stage.

Founder Tony Fernandes’ interest in India adds an intriguing twist to the scrappy battle for market share in India between low-fare airlines IndiGo and SpiceJet, the state-owned Air India, and Jet Airways, which has full-service and low-fare options. Heavy debt and a cut-throat price war had savaged the balance sheets of many airlines.