AirAsia group chief Tony Fernandes on Sunday slammed rumours of AirAsia India CEO Mittu Chandilya quitting the airline. Fernandes also announced the airline's plan to buy two new aircraft to expand its exisiting fleet.

According to earlier reports, Chandilya was planning to leave the airline after his contract with AirAsia ended in March 2016.

Speaking on the sidelines of the "Make in India" initiative in Mumbai, Fernandes said: "I read about Mittu calling it quits from you guys. I absolutely deny it. There is no substance to the rumours," Press Trust of India reports.

AirAsia India has a fleet of six Airbus A320-200 planes. Although the airline is reportedly making losses, Fernandes said soon two more aircraft would be added to the fleet and "a dozen later." He did not give a specific time-period of the aircraft deliveries.

AirAsia India is a joint venture between parent company AirAsia, Tata Sons and Arun Bhatia of Telestra Tradeplace Pvt Ltd. The parent company holds 49 percent stake in the airline, Tata sons have a 41 percent stake, while Bhatia owns a 10 percent stake in it, Press Trust of India added.

If the 5/20 rule is scrapped, AirAsia India would be allowed to operate on international routes with a fleet of less than 20 aircraft.

"All I am looking for is the ease of doing business. I hope basically that your (India's) aviation sector is made easy," Fernandes told the agency.