NEW DELHI: India's seventh airline was officially born on Wednesday as AirAsia India's year-long wait to get all the approvals culminated with the DGCA granting the air operator's permit on Wednesday.

"We would realistically start operations in anywhere between one to three months given the fact that a new government will be in place soon," said Mittu Chandilya, chief executive officer, AirAsia India.

Chandilya added AirAsia India will look to price their tickets nearly 35 per cent lower than the average fares in the market currently. "I think we can still make money despite offering lower fares, otherwise I wouldn't be here," he added. However, on the potential routes, Chandilya remained coy and said there are three sets of networks they have in mind.

"Possibly the first flight could be out of Chennai but that may change," he said adding AirAsia India will most likely fly to all metros but exclude Mumbai. "Our network isn't finalised yet but we are looking at a 60:40 ratio of Tier II routes to metro routes with 60 being Tier II," Chandilya said.

The tripartite joint venture between Tata Sons, AirAsia Berhad, and Telestra Tradeplace of Arun Bhatia has received the air operator's permit after over a year since the venture was announced. Tony Fernandes, one of the airline's promoter and group CEO of AirAsia Berhad, tweeted "What a battle that was, very proud day for me and the AirAsia All stars." "I'm ecstatic," Fernandes told ET.

"The consumer will win. Well done Indian government and DGCA for putting people first and not (heeding) vested interests. More power to the people," he added. But AirAsia has to still clear some hurdles. The validity of the permit is still subject to a Delhi High Court decision, said Prabhat Kumar, the director general of the DGCA.

The high court is hearing a public interest litigation filed by BJP leader Subramanian Swamy which claimed the venture is a violation of the FDI guidelines for the civil aviation sector. The case will be heard by a special bench on July 11.

Swamy may still throw a spanner in the works as he plans to approach the Delhi High Court on Thursday.

Procedurally, the venture will now have to get its schedule cleared by the DGCA before it can open bookings to begin commercial operations. DGCA officials said the process will take another week or two.

"Now is the phase when we will see how well the airline is prepared," said Mark D Martin, chief executive officer and founder of Martin Consulting. "Given the scrutiny they have been put through they should be in a position to fly over the next 48 to 72 hours."

"It is advisable for AirAsia to start operations from September/October, as starting in Q2 will burn lots of cash and impact their start-up capital which as it is very conservative," said Kapil Kaul, chief executive of Centre for Asia Pacific Aviation.

"AirAsia may not be fully prepared for an early launch and shouldn't rush for an early launch," he added. "More recruitment has to be done, startup training, logistics at each operating station to be set, slots have to be approved, schedules to be marketed within their distribution system and possibly other requirements to be addressed."