PARIS- According to insiders, India’s youngest airline, Akasa Air (QP), is reportedly engaging in discussions with Boeing (NYSE: BA) regarding a potential additional order of 737 Max single-aisle jets.
However, the talks are contingent on securing financing, which poses a challenge for the airline following its billionaire founder’s passing and Go First (G8) recent insolvency.
The negotiations said to be confidential, are expected to be finalized during the Paris Air Show this week.
Akasa Air Boeing Order at Paris Air Show
While there is no certainty about the outcome, Akasa may place an order for approximately 10 or fewer aircraft if an agreement is reached.
The discussions involve sensitive information, and sources have chosen to remain anonymous. Both Boeing and Akasa have declined to provide comments at this time.
Akasa, a recently established airline in India, commenced operations just last year. The carrier has already received 20 of the 72 Max jets it ordered.
Earlier this year, CEO Vinay Dube expressed the intention to place a significant order for additional aircraft by the end of the year. However, the insolvency of Go First has led aircraft lessors to exercise caution. Thereby impacting the airline market.
India’s aviation industry, known for its intense competition, is witnessing significant orders, such as from the newly privatized Air India Ltd. and the market leader IndiGo, which is expected to double its backlog by placing a 500-plane order at the air show.
In August, the untimely demise of Akasa’s billionaire founder, Rakesh Jhunjhunwala, raised concerns about the airline’s future funding.
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