Four things AirAsia must do to fuel growth in aviation

1. Innovate. Aviation is a tough business world-over, but toughest in India. The AirAsia-Tata combine will need to be ruthlessly efficient and innovative, and design a fare structure that will appeal to the middle class. India's passenger market is inexhaustible.

2. Work with the government. Indian rules and regulations are antiquated and regulations date back to 1937. The new airline will need to work with the government and help bring in reforms that will make the aviation sector vibrant.

3. Open up new destinations. New airlines especially, low-cost carriers, will open up places that are unconnected and introduce new city pairs. This new airline will hopefully do that, provide a boost to tourism, and generate jobs in the unorganised sector.

4. Create a new market. IndiGo Airlines is a well-run airline but it grew by cannibalising passengers from other airlines, not by creating a new market. AirAsia must follow a pricing strategy that creates a new community of travellers while improving collections. It needs to stimulate the market with low fares for early bookings.

(As told to K.R. Balasubramanyam)