AirAsia India is preparing to launch low-cost flights on the subcontinent in a move which could revolutionise travel in the country.

The airline is the first to utilise foreign investment in the country, following a recent relaxation of ownership legislation.

AirAsia India is a joint operation between low-cost powerhouse AirAsia and India’s Tata Group.

Indian aviation has been dogged by bankruptcies in recent years, with Kingfisher the latest airline to disappear from the skies.

Only one of the six main carriers, IndiGo, has been making profits in recent years.

AirAsia will be based in Bangalore.

The owners hope to tap into the surging demand for air travel in India as a new middle class emerges.

For its maiden flight between Bangalore and Goa, AirAsia India has offered tickets for as low as $17, cheaper than the train fare for a second-class air conditioned cabin.