MUMBAI- As India’s youngest carrier, Akasa Air (QP) approaches its one-year anniversary next month, the airline’s CEO, Vinay Dube, announced plans to place a mammoth new aircraft orders before the year’s end.
Dube expressed confidence in the company’s financial stability, noting that they are “well capitalised” and their performance has exceeded expectations.
Akasa Air Rapid Growth and New Orders Update
Currently, Akasa Air possesses a fleet of 19 Boeing 737 MAX 8, with one more set to join this month. Upon the addition of the 20th aircraft, the airline will become eligible for international operations.
Dube highlighted their strong financial position. He stated, “We were adequately funded to order 72 aircraft and can add 4 more on top of that. We are also adequately funded to place another three-digit aircraft order by year-end.”
Dube’s optimism about Akasa Air’s growth prospects comes in the wake of large-scale aircraft orders by Indian carriers such as Air India and IndiGo.
IndiGo (6E) recently placed an order for 500 aircraft from Airbus, while Air India (AI) ordered 470 aircraft from both Boeing and Airbus. However, Dube emphasized that Akasa Air’s focus is on building a sustainable airline that will endure over time, rather than chasing rapid expansion.
Future Outlook and Market Share
Looking ahead, Dube envisions Akasa Air as an airline with 76 aircraft and multiple international gateways by March 2027. The CEO emphasized their commitment to providing the highest levels of customer service.
As of May, Akasa Air holds a 4.8% share in the domestic aviation market. Dube expressed satisfaction with the airline’s progress, stating, “We are very, very happy to be at the stage that we are at. So, I think there is a lot of growth coming.”
Discussing growth prospects, Dube explained that as a smaller airline, Akasa has the potential to grow faster mathematically. The CEO noted that going from zero to one aircraft or one to two aircraft naturally yields higher percentage growth.
Regarding international operations, Dube highlighted the need for securing air traffic rights and finalizing slots at the target airports.
Ramping Up Manpower
Akasa Air is not only expanding its fleet but also increasing its workforce. The airline anticipates employing 3,500 individuals by the end of 2023. Subsequently, it continues its upward trajectory in the aviation industry.
In conclusion, Akasa Air is poised to make a significant aircraft order, backed by solid finances and impressive growth since its inception. With a focus on sustainability and customer service, the airline aims to establish itself as a prominent player in the global aviation landscape.
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