Tony Fernandes had blamed Indian domestic carriers for preventing AirAsia's India launch earlier, too, but this was the first time he named an airline.
AirAsia's competitors are offering more reliable services.
AirAsia has rolled out fares as low as Rs 3,399 for a Visakhapatnam-Kuala Lumpur.
AirAsia India on Monday moved closer to getting off the ground by appointing S Ramadorai as its Chairman, ending months-long suspense and having in place the entire top management team.
Ticket sales to open from Friday, says group CEO Tony Fernandes
"We are waiting for any input from any quarter," Civil Aviation Secretary R N Choubey said, adding, "We have not received anything so far".
The Foreign Investment Promotion Board, headed by DEA Secretary Arvind Mayaram, approved the proposal at its meeting in New Delhi.
At the heart of the current controversy is the government's FDI rule
DGCA asks those likely to be affected by a scheduled air operator's permit to the airline to give suggestions, objections within 30 days.
Unlikely to happen in less than a year,despite the advantage of the parent airline's base.
The Federation of Indian Airlines had challenged the aviation regulator's decision this week to issue an operating permit to AirAsia India.
The company, which will be first direct flight between Chandigarh and Bengaluru, will offer ticket at a minimum rate of Rs 1,900 inclusive of all taxes.
A woman passenger claimed that she had explosives and threatened to blow up the aircraft mid-air but it turned out to be a hoax. No bombs were found following a thorough search of the plane after it made an emergency landing.
'Indian aviation sector needs much more investment and new entrants.'
The crucial black box of the doomed AirAsia jet was on Sunday found in the Java Sea stuck under the debris from the plane's fuselage and will be retrieved on Monday as the major breakthrough in the search raised hopes of unravelling the mystery of the crash soon.
Thai AirAsia operates a daily flight between the Indian and Thai capitals, besides a weekly flight between Kolkata and Bangkok.
Most airlines have fattened their profits, turned the corner, or cut their losses, except AirAsia India.
In a December 2012 interview, Ratan Tata, then preparing to step down as chairman of Tata Sons, expressed doubts about the Tata group re-entering the aviation sector, calling it a space plagued by "destructive competition". But beneath that frustration lay nearly two decades of failed attempts to conquer the Indian skies. In 1994, Tata, along with Singapore Airlines, had plans to launch a joint venture (JV) airline in India.
Singapore's search operation to locate the debris of the crashed AirAsia plane came to end on Sunday with its ship that found the jet's fuselage in the Java Sea returning back after days of rigorous scouring.
Sources in the know confirmed Vistara, the joint venture between Tata Sons and Singapore Airlines, had booked six slots at the airport in New Delhi, adding it was ready to fly once it secured the government's nod.
Three groups blame companies of excluding locals from hiring in the country.
In an email, a SpiceJet spokesperson said: "A few foreign airlines/investors have evinced interest in SpiceJet. It will be very premature to comment on the possibilities of any fresh equity issuance to such interested parties."
AirAsia India, whose top officials have promised to offer low and competitive airfares, would have Chennai as its hub and would focus on connecting Tier-II cities to begin with.
AirAsia's India plans may not be hit with the current crisis that the airline is going through
Malaysian budget airline AirAsia moved a step closer to securing permission to launch operations in India, with Civil Aviation Minister Ajit Singh on Monday saying that all issues concerning the carrier's application have been resolved.
Two months after launch, low-cost warrior AirAsia is expanding to uncharted routes in India.
Recruitment and import of aircraft still to get going
AirAsia recently said it would set up a 49:30:21 joint venture with the Tata Sons and Telestra Tradeplace of Indian investor Arun Bhatia to launch a new Indian airline.
British business tycoon Sir Richard Branson donned high heels and fishnet stockings as a stewardess in a figure-hugging scarlet outfit on a AirAsia flight from Perth to Kuala Lumpur.
The newly formed AirAsia India, the Indian arm of Malaysia's low cost carrier AirAsia, has filed an application with the Civil Aviation Ministry seeking permission to launch its operations, official sources said on Thursday.
Two large metal objects have been found in the search for the AirAsia airliner in the JavaSea, Indonesian officials said on Saturday, even as continuing bad weather held back efforts to hunt for the plane's data recorders.
The airline's chief had said it would focus more on tier-II cities. Already, the airline connects some of its major destinations from Tiruchirapalli, one of the busy tier-II hubs in Tamil Nadu.
Officials differ, say firm should first fly regional.
AirAsia India appears to have chosen destinations where it would face intense competition from other airlines, which fly directly to all these, barring one.
AirAsia will be the first airline to have Chennai as a hub and would focus on tier-II and III cities in South India.
No-frills carrier AirAsia India on Monday offered rock-bottom fares, starting at as low as Rs 1,299 for domestic flights, as part of the parent AirAsia's global sale offer for a limited period.
AirAsia is facing a legal challenge from Bharatiya Janata Party MP Subramanian Swamy, whose petition comes up for hearing at the Delhi HIgh Court on Wednesday.
AirAsia India CEO Mittu Chandilya, who was here on the Bengaluru-Jaipur launch flight, said both the cities have great potential to expand and hence the airline has set aggressive targets and beginning of flights to the two new routes was a part of the business strategy.
Company chief Tony Fernandes said the name of Chairman for AirAsia India board would also be disclosed soon
The losses are primarily because the venture operated only for 18 days in June, with only two flights.