According to one Boeing executive, Akasa’s orders, which are backed by billionaire investor Rakesh Jhunjhunwala, are merely additions.
Akasa Air placed an order for 72 Boeing 737 MAX planes worth nearly $9 billion at list prices on Tuesday to help Boeing regain lost ground in one of the most promising markets.
The country’s air safety regulator cleared the MAX jet for flight earlier this month, putting an end to nearly two and a half years of regulatory grounding following two fatal crashes that killed 346 people in five months. Rakesh Jhunjhunwala, a billionaire investor, is backing the airline that issued the order.
Mr Jhunjhwala has formed a joint venture with the former CEOs of IndiGo, the country’s largest carrier, and Jet Airways to capitalise on domestic air travel demand, which is approaching pre-pandemic levels.
The budget airline is expected to start flying in the new year after receiving preliminary approval from the civil aviation ministry in October.
“Air travel is already on the mend, and we expect it to continue for decades,” Akasa Air CEO Vinay Dube said at the Dubai Airshow, where the order was announced.
Akasa has ordered the 737-8 and the 737-8-200, both of which are said to be included in the contract
According to Reuters, Boeing is close to a deal to supply 70 to 100 737 MAX planes to Akasa, subject to an agreement on a long-term engine service contract with the Japanese airline.
While Boeing controls the majority of the wide-body market in India with 51 planes, full-service carriers such as Kingfisher Airlines and Jet Airways have been forced out due to fare wars and high costs, allowing low-cost carriers such as Airbus to become even more dominant.
Following the demise of Jet in 2018, Boeing’s share of India’s 570 narrow-body planes fell from 35% to 18%, according to CAPA India. In India, the MAX planes are currently only used by SpiceJet.
