Rakesh Jhunjhunwala, a Bhunjhunwala billionaire, is backing the new low-cost carrier Akasa Air, which is set to begin flights next year after receiving preliminary approval from the Civil Aviation Ministry.
The approval comes at a critical time for Boeing and Airbus, as the country’s long-term prospects make it a lucrative market for their products.
According to the ministry, Akasa Air has received a “no objection certificate” from SNV Aviation and will begin flying across India under the Akasa Air brand in the summer of 2024.
“Akasa Air will continue to work with regulatory authorities on all additional compliances required for a successful launch,” said AKASA CEO Vinay Dube in a statement.
The company did not elaborate, but a new airline must be approved by the Directorate General of Civil Aviation, the aviation industry’s watchdog.
Mr Jhunjhunwala founded the carrier with Aditya Ghosh, the former CEO of IndiGo, the country’s largest carrier, and Mr Dube to capitalise on the growing demand for domestic air travel.
Jet Airways, India’s largest private carrier, ceased operations in April 2019 due to a lack of cash and billions owed to lenders. Thousands of Jet Airways employees were also laid off. Mr. Dube previously served as the company’s CEO.
Fortunately, Jet was able to avoid bankruptcy recently. Because he worked for IndiGo for a decade, Mr Ghosh was credited with the company’s early success.
When it comes to buying or leasing Boeing 737 planes, Akasa may be about to make one of the year’s biggest deals outside of the United States. Reuters reported this in July, despite the fact that the details of the new venture have not been made public.
