As India is planning to operate all international flights in the latter half of 2022, the good news is coming from Akasa Air airline. Everyone is anxious about Rakesh Jhunjhunwala backed airline, this article will shed some light on airline background and its future.
Table of Contents
Brief history and a glimpse of the future
Only a few months back Rakesh Jhunjhunwala invested around $ 35milion in Akasa Air founded in 2021 for a 40% stake. He has decided to go ahead with a plan to compete with airlines operating in India or the world for that matter!
Boeing company has received a huge order of 72 Boeing 737 MAX aircraft from this proposed airline. Boeing will deliver the first of the ordered Boeing 737 Max in April 2022 hopefully, all the international flights from/to India will resume shortly.
This airline will have a fleet of around 18 Boeing 737 aircraft for domestic flights by the next financial year-end. With 20 aircraft in the fleet, the airline will operate its international flights in the second half of 2023.
Recruitment drive for skilled and qualified human resources
With Vinay Dubey (former CEO of Jet Airways and Go First) as CEO and Aditya Ghosh (former Director of Indigo) as Co-founder, Rakesh Jhunjhunwala expects to take this airline to a greater height. The airline has already started the recruitment process for skilled and qualified human resources.
The recruitment drive will start on a very large scale which involves:
- Pilots
- Cabin crews
- Aircraft Maintenance Engineers (AMEs)
- Technicians
- Ground staffs
- Security personnel
- Medical staffs
- Accounting managers, etc.
A large number of laid-off personnel during the pandemic are also looking at this opportunity as a gateway to the future.
Competitive civil aviation market
A new airline has to do their business with utmost smartness if they want to stay in the market for 20 to 50 years. We already know about the huge order, valued at nearly USD 9 billion Boeing bagged from this airline. A large number of human resources and operating costs will make it slightly difficult for the newly opened airline, awaiting her fleet.
Since this airline is a low-cost carrier, it will get some competition from the below airlines:
- Indigo airline
- AirAsia India
- Air India Express
- SpiceJet
- Go First.
But hey! They already know that. Then why?
Factors that boost the confidence
- growth of middle class
- strong economic growth
- growth of disposable incomes
- lively experience requirements of youth
- first-time flyers who value their time for affordable prices.
Fleet size
For now, a total number of 72 Boeing 737 MAX Aircraft will fly under the name.
“Akasa Air | IT’s YOUR SKY”
Source: official website of Akasa Air
The ordered fleet includes 189 passengers Boeing 737-8 and 197 passengers Boeing 737-8-200 aircraft.
Future Plans
Akasa Air is a brand of SNV Aviation Private Limited. This airline is working with airports, both private and the Airport Authority to get slots, parking bays, and other items. These are required for an airline to reduce the queue times and be on schedule.
The airline has already obtained a No Objection Certificate (NOC) from the Ministry of Civil Aviation. They will complete the Air operators’ certification (AOC) process as soon as Boeing delivers 1st aircraft.
Akasa Air will have flights from metros to Tier II and III cities. Also, there will be flights from metros to metros.
Challenges that new airlines face
The new airline has the below-mentioned challenges:
- setting up the technology
- Data and analytics for fuel, leasing, people, airports, maintenance, technology
- creating processes and procedures
- defining things related to customer centered airline
- enriching the shopping experience for customers
- planning of new route networks
Conclusion
Akasa Air airline will be fully functional in the second half of 2022. With plans to enrich customer service offerings, commercial aspects and, revenue generation aspects, the airline eyes the international services in the second half of 2023. Having an experienced CEO, Vinay Dubey and Co-founders this airline aims to stay in the business for the next 20 to 50 years.
Let us hope this airline might be a key player in providing various openings in desperate times post-pandemic.
Like the article? Please read another one on opportunities in civil aviation.
FAQs
1. What is the advantage of Boeing 737 MAX 8 aircraft?
Boeing designed the 737 MAX 8 to offer great flexibility, reliability, and efficiency in the single-aisle market. The maximum seating capacity is 210. The range is 3550 nautical miles suitable for flights from/to India from/to Southeast Asia, South Asian Association for Regional Cooperation (SAARC) countries, the Middle East.
2. Is Boeing 737 MAX aircraft allowed to fly in India?
Yes, after Aug 2021 if the airline fulfils the requirements for return to service of Boeing 737 MAX. Earlier in March 2019, the Directorate General of Civil Aviation (DGCA) banned the operation of the Boeing 737 MAX due to fatal accidents involving these aircraft.
3. Who is Rakesh Jhunjhunwala?
Rakesh Jhunjhunwala is a successful investor and a billionaire.
He owns a 40% stake in Akasa Air. He has a bullish outlook on Indian civil aviation.
4. Who is Aditya Ghosh?
Aditya Ghosh is a businessman who worked for Indigo as a director. He has a decade of experience in the aviation industry. He is one of the co-founders in Rakesh Jhunjhunwala backed airline.
