India Gets A Brand New Ultra-Low Cost Airline Akasa That’ll Make Domestic Air Travel More Affordable

by Tania Tarafdar
India Gets A Brand New Ultra-Low Cost Airline Akasa That’ll Make Domestic Air Travel More Affordable

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

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

We can’t wait to fly in this brand new airline.