The Indian business tycoon and an ace investor, Rakesh Jhunjhunwala, is backing Akasa Airlines. The news tells us that Akasa Airline has also received a no-objection certificate (NOC) from the Ministry of Civil Aviation.
Rakesh Jhunjhunwala has invested Rs. 247.5 crore in the new airline company. Additionally, the Jhunjhunwalas have a share of 40% in the new airline organization.
Akasa Airlines is expecting to fly around 70 planes in the next four years. Additionally, they will start their operations the following year. With the entry of the Rakesh Jhunjunwala backed airline, India will see a new airline option in the market. Apart from Jhunjunwala, the airline is also being co-promoted by Vinay Dube, the former CEO of Jet Airways, and Aditya Ghosh, who is an ex-CEO of yet another airline company, IndiGo.
Now, Vinay Dube will be acting as the CEO of this new company. Meanwhile, Praveen Iyer, who was previously with Jet Airways, has been given the post of Chief Commercial Officer.
Additionally, it was SNV Aviation who said that they had received the NOC from the government. Moreover, SNV Aviation will be flying under the brand name Akasa Airlines.
What Is The Business Model That The Akasa Airline Will Be Following?
Akasa Airlines will be following the ultra low-cost carrier business model. This means that the company will focus on keeping its costs lower than other aviation companies. Moreover, such ultra-low-cost companies operate at minimal costs to ensure profitability. Additionally, experts have said that it might be tough for companies to follow such a model to handle this business model, owing to fewer no-frill airport terminals.
Akasa Airline has been in the news for some time now. And by receiving a NOC from the government, it would be interesting to see how and when the company will begin its operation. Besides, Rakesh Jhunjhunwala has already said that he is very bullish when it comes to the Indian aviation sector. He finds that the demand is ever-growing in this particular sector.
Meanwhile, Airbus is talking with the Airline company for a deal in aircraft procurement, as informed by the Airbus Chief Commercial Officer.
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