We told you about India’s brand new airline FlyBig that will serve tier 3 cities in the country. And now, millionaire investor Rakesh Jhunjhunwala is launching a brand new airline Akasa. In a Bloomberg Television interview
Jhunjhunwala said that he is considering investing $35 million and would own 40% of the carrier. In fact, he expects to get a no-objection certificate from India’s aviation ministry in a few days.
The Low-Cost Airline Plans To Operate 70 Carriers
The ultra-low cost airline will be called Akasa Air. The team includes a former senior executive of Delta Air Lines Inc and they are looking to operate 70 aircraft in four years that can carry 180 passengers.
For Rakesh Jhunjhunwala, who’s known as India’s Warren Buffett, this new venture can be a high-risk in a market that has seen many airlines collapse. Even before the pandemic, airlines in India were struggling to stay afloat. Kingfisher Airlines Ltd ended operations in 2012, and Jet Airways India Ltd collapsed in 2019. However, Jhunjhunwala is looking to woo flyers with the low-fare offerings.
Also read: India’s Brand New Airlines Flybig To Take Off From January 3; Here’s Everything To Know
Rakesh Jhunjhunwala plans #AkasaAir as an ultra-low cost airline. This means you book a seat & pay extra for other services you want.
Low-cost carriers also aimed something similar initially, but a #Howindialives analysis suggests otherwise.
Read here: https://t.co/Qr0n87yVYi pic.twitter.com/lSNCSMtPVh
— Mint (@livemint) August 10, 2021
The New Budget Airline Comes At A Time When Aviation Sector Is Suffering Heavy Loses
The aviation sector is looking at a slow recovery with the badly-hit travel industry. As the pandemic looms, Vistara is in discussions with Boeing Co. and Airbus SE to delay aircraft deliveries and adjust the payment timetables. IndiGo, India’s largest airline, suffered a huge loss as COVID-19 disruption crimped its revenue. However, nothing is stopping Jhunjhunwala to launch the new budget airline. Jhunjhunwala has an estimated net worth of about $4.6 billion according to Forbes.
Also read: 7 Big-Budget International Destinations That Will Become Pocket-Friendly After Pandemic
Very interesting team building in #AkasaAir pic.twitter.com/N07ocDXshw
— Baibhav Mishra (@mishra_baibhav) July 29, 2021
We can’t wait to fly in this brand new airline.