MUMBAI- India’s youngest domestic carrier, Akasa Air (QP), is gearing up to commence international services this month and has opted to streamline its budget for the upcoming financial year starting April, as part of a strategy to exercise cost control, according to sources.
When approached for comment, an airline spokesperson said they continually explore judicious methods to manage costs effectively.
Akasa Air Cutting Budget
The airline, having commenced commercial flights on August 7, 2022, and currently operating more than 20 Boeing 737 Max aircraft, is reportedly planning to slash its fiscal year 2024-25 budget by up to 20%, as revealed by sources on Monday.
An Akasa Air spokesperson emphasized the company’s commitment to cost-conscious practices while maintaining safety, customer experience, and overall business health.
The spokesperson clarified that cost-cutting measures would not affect employee salaries, and the airline remains well-funded, securing its initial investment in its bank account. However, specific details about the budget reduction plans were not immediately available.
Responding to queries about a potential 15% cut in salary variables for the next fiscal year, the spokesperson stated that Akasa Air is proud to offer a leading compensation package to its workforce and affirmed that this commitment would continue in the upcoming fiscal year.
Last year, the airline faced challenges, including pilot exits leading to flight cancellations, and it reported a comprehensive loss of Rs 744.131 crore for the year ended March 31, 2023, according to financial data obtained from the Tofler business intelligence platform.
New Routes and Planes
Scheduled to commence international operations with its inaugural Mumbai to Doha flight on March 28, Akasa Air has been steadily expanding its presence. With a domestic market share of 4.5% in January, the airline has been proactive in its fleet expansion.
In January, it placed an order for 150 Boeing 737 Max planes, building on its initial order of 72 Boeing 737 Max aircraft in 2021.
The airline further reinforced its commitment to the Boeing 737 Max series with an additional order for 4 Boeing 737 Max 8 aircraft in June 2023.
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