The airlines sector in India is quite popular because of its high price rates. Hence, the hype caused from the announcement of an ultra low cost carrier is quite understandable. However, due to the ongoing covid-19 pandemic, the airlines sector has experienced a major setback. Despite the current situation, the Indian airlines is all set for the new Akasa Airlines. Renowned stock market investor, Rakesh Jhunjhunwala will launch the company.
Details of the Akasa Airlines
Rakesh Jhunjhunwala is all set to launch the Akasa Airlines, a forthcoming ultra low cost carrier. The stock market investor will reportedly invest a sum of $35 million. He will hold a stake of 40% in the company.
The new airline will probably go by the name ‘Akas Air’. It will most likely enter the market by April 2022. The future for Akasa Airlines looks quite promising as Rakesh Jhunjhunwala aims to construct a fleet of 70 airplanes by the next four years.
In consonance with a report by the Times of India, the holding company for the airlines, ‘SNV Aviation’ has received the no objection certificate (NOC) from the ministry of aviation.
Regarding the upcoming airlines, Kapil Kaul, the CAPA India head said, “It will be a long haul and the new airline will be very severely tested but the capitalisation and the start team gives confidence that it is possible for them to be successful.”
Members onboard for the Airline Company
Alongside Rakesh Jhunjhunwala, the members who are reportedly onboard for the upcoming company are:
- Former CEO of Jet Airways, Vinay Dube. He will most likely be the CEO of Akasa Airlines.
- Ex president of Indigo, Aditya Ghosh who is anticipated to be Rakesh Jhunjhunwala’s nominee.
Akasa Airlines’ ULCC ideology
Akasa Airlines will operate on the ideology of ultra low cost carrier (ULCC). Like the name suggests, in this model the main aim is to function on a budget which is lesser than the already existing ones. The company cuts short on some facilities and services that airline services usually include. Some of those amenities include:
- Selection of seats
- Services of food and beverages
- Cabin luggage
- Checked in luggage
The LCC model functions on prices slightly lesser than the full service airlines. Whereas, ULCC focuses on functioning at minimum rates as much as possible. This is to make sure of absolute lucrativeness.
Jet Airways 2.0 to enter the market along with Akasa Airlines
Jet Airways is all set to make a revival in the industry with the launch of Jet Airways 2.0. The company was previously grounded in April 2019.
Naresh Goyal founded the company in 1993. Jet Airways is currently operating under a new managing system for its re-launch. The syndicate backing the Jet Airways 2.0 involves:
- UK-headquartered Kalrock Capital
- Arab based businessman, Murari Lal Jalan
Both the Akasa Airlines and Jet Airways are entering the market at a time when profit has been low due to less demands in the sector.
However, after reviewing all the details and Rakesh Jhunjhunwala’s determination for Akasa Airlines, the future looks quite promising.