Akasa Air: India’s newest airline set to launch in 2022

Indian billionaire, Rakesh Jhunjhunwala plans to establish a new carrier in India called Akasa Air with around USD35$ million in starting capital for 40% of the stake in the new venture. Along with Jhunjhunwala, the previous Chief Executive of IndiGo, Aditya Ghosh and Jet Airways founder, Vinay Dube will also become co-founders of this brand-new carrier.

The airline is expected to launch by the middle of next year and will operate as an ultra-low-cost carrier (ULLC). India’s airline sector is currently being dominated by low-cost carrier (LCC) airlines like IndiGo, Go First, Air Asia India, SpiceJet and Air India Express.

While there are plenty of low-cost airlines in India, another brand new carrier under the same business model could find it difficult to establish itself in such a congested market, especially starting out. Many industry analysts from around the world are questioning the timing of Akasa Air’s launch which is far from ideal. However, the founders of the new airline believe the airline could capitalise on the upward trend of post-pandemic air travel in 2022.

With an initial investment of $35 million, Akasa Air is expected to induct a total of 70 aircraft into its fleet over the coming four years. The founders of the airline are currently looking at possible aircraft types including the Airbus A320 and A220 as well as the Boeing 737 and even the possibility of using Embraer aircraft.

The aircraft will be laid out in a single class configuration of around 180 seats. Aviation analysts are anticipating stiff resistance from the competition, but an increase in competitors only drives the aviation market in favour of passengers, with lower ticket fares and added benefits. The ultra-low-cost model of Akasa will have to be truly unique and different from the current airlines if the airline is to be successful.

There may well be an opportunity for the newly founded, Akasa Air in terms of aircraft and airport slots. The new airline will also increase employment and competition within the Indian aviation market. It is unclear as to what type of aircraft or route network the carrier may provide, however, the new airline may need to commence operations sooner rather than later, following the restart of Jet Airways.

Source: https://aeronewsx.com/akasa-air-indias-newest-airline-set-to-launch-in-2022/?utm_source=rss&utm_medium=rss&utm_campaign=akasa-air-indias-newest-airline-set-to-launch-in-2022