Even as Malaysia’s AirAsia and its affiliates in Thailand, Indonesia and the Philippines initiate operations to India, nearly three-year old AirAsia India continues preparations for international operations next year while serving as a domestic feeder to its group. India’s civil aviation policy mandates a domestic carrier must fly three years and operate at least 20 aircraft before launching international flights.

Now flying eight Airbus A320s, AirAsia India plans to increase its fleet size to 14 by October and to 20 by autumn 2018, Amar Abrol CEO told AIN. The airline will primarily connect metropolitan centers to second-tier cities as it expands. “The overall strategy is route dominance rather than getting hammered everywhere,” said Abrol. AirAsia India leases its aircraft, which average seven years of age, from Frontier Airlines of the U.S. It plans to begin taking A320neos after it takes its 20th current-generation A320.

AirAsia took delivery of its first A320neo last September and plans to accelerate deliveries this year for its Malaysian and Thai operations.

As Indian budget carrier IndiGo expands rapidly in the domestic market, AirAsia India appears unlikely to initiate a head-to-head challenge, choosing instead to become a domestic feeder to its parent airline while also using bilateral rights to fly to Asian destinations not yet fully exploited by operators. “IndiGo’s expansion is humongous,” acknowledged Abrol. As the largest budget airline group in Asia, AirAsia sees its focus “naturally” on Southeast Asia, where it has established infrastructure. “We literally don’t have to do anything; we just have to land up in Kuala Lumpur, Bangkok...airports are ready, staff is already there. It’s all there,” Abrol said. AirAsia Indonesia will soon start Bali-Mumbai flights, AirAsia Thailand flies into Kolkata, AirAsia Malaysia flies into Bhubaneswar and AirAsia X wants to increase frequency to Delhi. “Routes beyond Singapore, Bangkok and Kuala Lumpur have hardly any flights from India,” Vishok Mansingh, CEO of Mumbai-based consultancy CAV Aero Services told AIN. He added that AirAsia’s fares, often under $75, to Asia “fit the bill” for cost-conscious Indians.

However, saturated airport infrastructure in Mumbai, Bangalore and Delhi could well become a constraint to growth for connecting city pairs, cautioned Abrol. “Getting a prime slot is next to impossible,” he said.

AirAsia Berhad, through AirAsia Investment, Ltd., owns 49 percent in AirAsia India. The Tata group owns 49 percent, and two directors of AirAsia India—S. Ramadorai and R. Venkataramanan—own the rest.