The Kuala Lumpur-based airline will launch its first flight to Trichnapalli in Tamil Nadu from the Malaysian capital by the end of the year.
Exuding confidence about making a low-cost entry, Fernandes said, "We will offer prices even lower than Air India Express, which is subsidised by the government. Our flight will be available at around 200 ringgits (Rs 3,450)."
AirAsia will also be looking at tie-ups with Indian carriers such as Paramount. Explaining the aim, he said, "We can innovate in this segment by promoting Paramount, which is already strong in the south or rebrand ourselves for the regional market," said Fernandes.
The airline is planning to launch flights to Delhi and Mumbai eventually and will then fly to Hyderabad and Chennai.