Rakesh Jhunjhunwala’s Akasa Air orders 72 Boeing 737 MAX jets

Akasa Air, the Indian affordable airline backed by capitalist Rakesh Jhunjhunwala, had placed an order for seventy two Boeing 737 MAX jets.

“Akasa Air’s order includes 2 variants from the 737 MAX family, together with the 737-8 and also the high-capacity 737-8-200,” the joint statement by Boeing and Akasa Air mentioned.

The move may facilitate the U.S. planemaker regain the lost ground in one of the world’s most promising markets.

Also Read: Rakesh Jhunjhunwala Launches Akasa Air, An Airline Focused On Affordable Fares

“We area extremely delighted to partner with Boeing for our 1st aircraft order and thank them for their trust and confidence in Akasa Air’s business set up and leadership team,” the airline’s CEO, Vinay Dube, said, per the statement.

“India is one in every of the fastest-growing aviation markets within the world with an incomparable potential. We have already witnessed a robust recovery in travel, and that we see decades of growth prior to us” Dube aforementioned.

Last month, SNV Aviation, that owns Akasa Air, aforementioned that it expected to begin flying next year once obtaining initial clearance from the civil aviation ministry to launch the country’s latest ultra-low-cost carrier.

Akasa Air plans to supply flights across India beginning in the summer of 2022 with an “endeavour to be the nation’s most reasonable, dependable and greenest airline”.

Jhunjhunwala, referred to as “India’s Warren Buffett”, has teamed up with former chief executives of IndiGo, the country’s biggest carrier, and Jet Airways to tap into demand for domestic travel, that is nearing pre-pandemic levels because the country recovers from a devastating outbreak earlier this year.

Also Read: Jhunjhunwala’s Akasa Air gets NOC, set to start operations by mid-2022

India’s air safety regulator in August had allowed the country’s airlines to fly the MAX jet to finish its nearly two-and-a-half-years of restrictive grounding.

The 737 MAX jet was grounded worldwide in March 2019 once 2 fatal crashes in 5 months killed 346 individuals, plunging Boeing into a money crisis, that has since been combined by the COVID-19 eruption.

Boeing dominates India’s widebody market of fifty one planes however fare wars and high prices have lead to casualties among full-service carriers, together with Kingfisher Airlines in 2012 and Jet Airways in 2019, creating low price carriers and airliner dominant.

Boeing’s share of India’s 570 narrowbody planes fell to 18% from 35% once Jet’s collapse in 2018, information from CAPA India consultancy shows. Currently, SpiceJet is Boeing’s biggest and solely client for the MAX planes within the country.

Rakesh Jhunjhunwala Launches Akasa Air, An Airline Focused On Affordable Fares

akasa air

The Indian King of the stock market, Rakesh Jhunjhunwala, is all set to present new airlines at our service in less than a year. If things fall in the right place, Akasa Air is supposed to commence its services by the summer of 2022. A Rakesh Jhunjhunwala powered aviation firm SNV Aviation has devised the rollout of an airline that will cater to the diversified classes of the Indian population coming from different economic and cultural backgrounds.

Rakesh Jhunjhunwala has already roped in the two connoisseurs of the aviation industry to his assistance in propounding and smooth running of Akasa. The team of Rakesh Jhunjhunwala includes former IndiGo president Aditya Ghosh and retired Jet Airways CEO Vinay Dube. According to the strong news breaking out, Vinay Dube will serve as the CEO of the Rakesh Jhunjhunwala funded new venture. At the same time, Aditya Ghosh is said to be Rakesh Jhunjhunwala’s nominee.

Akasa Air wants to categorize itself as a low-cost or ultra-low-cost airline that will significantly cut the air travel fares. Low-cost or ultra-know-cost airlines have been a hit in the Indian market. IndiGo is the largest Indian airline that runs on a low-cost business model. While the name says it all, nonessential services such as food and beverages are curtailed in the low-cost airlines. In the ultra-low-cost model, the extravagance is further reduced to maintain profitability. What business model Akasa Air will choose remains a matter of curiosity as of now.

Akasa Air which is slated to begin its operations in the summer of next year, has obtained a green single from the Ministry of Civil Aviation. The NOC from Civil Aviation Ministry was the most fundamental stage for Akasa Air to acquire the Air Operators Certificate.

Vinay Dube, who is serving as the CEO of Akasa Air, has released a statement on the pretext of obtaining a No Objection Certificate from the Aviation Ministry. He mentioned in the statement that the airline would work abiding by the regulatory authorities for further regulatory standards before and after the initialization of the airline service. He also mentioned that Akasa Air would serve Indians regardless of their socioeconomic or cultural background and planning to assign flights across India beginning the summer of the next year.

More Details Of Akasa Air

The Indian stock market stalwart Rakesh Jhunjhunwala is reportedly infusing $35 million in Akasa Airlines and will occupy 40 percent shares in the latest venture. Akasa Airline is planning to procure 70 airplanes spanning over four years. Akasa Air is in talks with the United States Plane manufacturer Boeing to acquire Boeing 737 Max planes. On the other hand, a top official at Airbus has also divulged that Airbus has approached Akasa Air for the procurement deal. Airbus 320 planes are believed to be a strong competitor against Boeing’s B737 Max planes.

The aviation industry is experiencing a good time since the Tata group’s taking over the Air India administration. Tata group owns three airlines in India at present. However, IndiGo remains the largest airline operator. Now the latest entry of Akasa Air in the aviation industry will begin a new chapter. The last two years were quite a down phase for airline operators as the corona pandemic affected all industries badly.