MUMBAI- You might not have made your New Year plans yet but someone is gearing themselves up for 2025! Along with announcing the Christmas Special menu for the holiday season, December is looking very positive for Akasa Air (QP), as it has entered into a Codeshare agreement with Etihad, and to put the icing on the cake, there are new investors! This is after it partnered with CAE in Canada for Pilot Training.
Indian Airlines plays a significant role in the aviation industry’s progress. IndiGo (6E) and Air India (AI) are gradually establishing a duopoly in the market, while SpiceJet (SG) and Akasa Air will seek to capitalize on the rising market as well.
Akasa Air Founders and Foundation
Akasa is the 7th Indian Airline to have a metal bird in the sky. On August 7, 2022, the airline began commercial operations with its inaugural flight from Mumbai to Ahmedabad, following the arrival of its first Boeing 737 MAX 8.
Vinay Dube, the airline’s CEO, predicted that the fleet will be roughly 72 aircraft within 5 years. The airline now operates 26 aircraft and has an order for an additional 200, all Boeing 737 MAX fleet.
As of December 2024, Akasa Air flies to a total of 27 destinations including 22 domestic destinations and 5 international destinations.
With the competition getting tougher now, Akasa Air’s CEO, Vinay Dube has claimed in an interview with The Economic Times
“..(the competition) does not worry us is because we continue to be India’s fastest growing airline, we continue to have the most competitive cost structure, we built this in our base, we have got an incredibly solid financial foundation and with that as a base if we can keep our customers happy as we are, talked about our on-time performance, our baggage delivery, I have not begun to touch upon the feedback we are receiving, the way I describe the feedback we are receiving is just a bit of gentility and kindness in terms of our airport experience.”
Vinay Dube, CEO, Akasa Air
Profitable by 2028?
Revenue increased more than fourfold, to Rs 3,069.58 crore, from Rs 698.67 crore in FY23. Ankur Goel, CFO, stated that the airline’s fleet capacity will expand by 50-55% in FY25, raising revenue by around 50%. Total expenses increased more than threefold last fiscal year to Rs4,814.4 crore from Rs1,522 crore in FY23.
Goel stated that the company invested extensively in areas such as fleet expansion, brand marketing, and new hires, especially pilots, which increased costs!
Employee benefit expenditures increased to Rs 774.9 crore in FY24 from Rs 232.4 crore the previous year, as the airline added 1,400 new employees to bring its total staff to 3,800!
When asked about the losses, Ankur Goel, told ET that an airline takes several years to stabilize before breaking even.
Also Read: Akasa Air Will be in Top 30 Airlines in the World List by 2030: CEO Vinay Dube
Despite this, Akasa co-founder and CEO Vinay Dube remains optimistic that the company will be profitable within the next three years, according to an interview with The Economic Times published in August 2024. The airline will go public by 2028!
New Investors for Akasa
Akasa has grown at the quickest rate of any new Indian airline in its first two years.
Its rising losses, which are not uncommon for young airlines, necessitate more money as it seeks to grow large enough to enter the two-horse race in the Indian aviation sector between IndiGo and Air India, which together account for over 90% of the market.
Akasa has already surpassed its much older rival SpiceJet, which has been dealing with financial difficulties. In October, SpiceJet flew 3.35 lakh passengers and Akasa transported 6.16 lakh passengers, representing 2.4% and 5.4% of total domestic passenger traffic, respectively, according to DGCA data.
Two well-known figures are betting millions of dollars on Akasa Air. Premji Invest and Claypond Capital, the family offices of Wipro founder Azim Premji and Manipal group chief Ranjan Pai, respectively, are buying a significant minority stake in Akasa Air, according to ET. The transaction is part of the budget carrier’s $130-140 million fundraising.
“The foundational years of any airline are dedicated to investing in its people, fleet, training, operating infrastructure, and network, and hence no airline registers P&L profits in these years.”
Ankur Goel, Chief Financial Officer, Akasa Air
According to an industry analyst, delays in aircraft deliveries can have an impact on a relatively new airline such as Akasa, as opposed to established airlines. To this, Goel responded that the airline is “comfortably positioned” at this moment.
According to ET, the carrier can use the new funds supplied by the Premji Invest-Claypond funds group for future expansion and pre-delivery payments for aircraft.
Akasa’s Codeshare with Etihad
Akasa threw a big surprise at the beginning of December when it came up with a Codeshare agreement with Etihad (EY). While neither airline made a formal announcement, Akasa Air flights with Etihad codeshare began appearing on Etihad’s booking engine.
This will be Akasa Air’s first and only codeshare, with operations beginning in August 2022.
Flights to Abu Dhabi from Ahmedabad and Bengaluru commence in March 2025 and are available for booking on the Gulf carrier’s website, with “Operated by Akasa Air” and an Etihad flight number. Akasa Air is also offering those flights on its website. This provides Akasa Air with an advantage that no other company has enjoyed.
IndiGo, for example, had its first codeshare in 2019, after starting operations in 2006.
Go FIRST did not have a single such deal during its 18-year history. SpiceJet no longer has a codeshare agreement with Emirates, following a widely publicized announcement that never materialized.
Also Read: Etihad and Akasa Air to Begin Codeshare in Early 2025
With the agreement, Akasa Air will be able to deploy extra capacity to Abu Dhabi, allowing it to grow its international presence, increase utilization, and corner rights where they are still readily accessible, as opposed to other destinations.
Partnership with CAE & Pilot Hiring
In March 2024, Akasa Air formed a 15-year agreement with Canadian aerospace giant CAE to strengthen its footprint in the Indian aviation sector. The agreement comprises CAE offering Boeing 737 Max training to Akasa Air pilots at sophisticated facilities in India.
Akasa Air will leverage CAE’s training facilities, trainers, and cutting-edge full-flight simulators for a significant period of time. This move demonstrates CAE’s commitment to Akasa Air’s growth trajectory and maintaining the highest level of pilot training.
In an unfortunate incident in September last year, Akasa Air was forced to cancel about 24 daily flights after approximately 43 pilots abruptly resigned to join competing carriers without serving their statutory notice periods.
The airline was so disturbed that it declared before the Delhi High Court that it was in a “state of crisis” and that it “may shut down”. However, the airline later stated that there was no intention of closing down.
While speaking at the CAPA India Aviation Summit 2024, Vinay Dube mentioned–
“We have stopped hiring pilots. We have plenty of pilots for our current fleet. We have plenty of pilots for our growth. We are focused on building their skills.”
Vinay Dube, CEO, Akasa Air
Akasa Air Pilots Salary
To compete and attract skilled pilots, a pilot’s salary is likely to be competitive as well.
Currently, the salary structure of Pilots are as follows–
| Akasa’s Flight Deck Crew– Salary Structure w.e.f. 01 July 2023 | |||||
| Hours | Transition Capt./Capt. | Sr Transition Capt./Sr Capt. | FO | Sr FO | Trainee Capt. |
| Hourly pay post 40 Hours | 550000 | 625000 | 260000 | 340000 | 430000 |
| Hourly pay post 70 Hours | 7500 | 7500 | 3045 | 4515 | 5000 |
| Projected Sal @55 Hrs | 662500 | 737500 | 305675 | 407725 | 505000 |
| Projected Sal @60 Hrs | 700000 | 775000 | 320900 | 430300 | 530000 |
| Projected Sal @70 Hrs | 775000 | 850000 | 351350 | 475450 | 580000 |
| Hourly pay post 70 Hrs | 10000 | 11000 | 3045 | 4515 | 5000 |
| Projected Sal @80 Hrs | 875000 | 960000 | 381350 | 520600 | 630000 |
We will make a separate post with updated salary in the coming weeks, so stay tuned. Until then check out salary of pilots in India here:
Redefining Travel with Industry-First Offerings
Akasa Air has a daring new vision of what it means to fly in the modern day, with projects ranging from gourmet in-flight cuisine to pet-friendly travel, all motivated by a dedication to diversity and customer quality.
Cafe Akasa, Pets on Board, SkyBeats, SkyLights, SkyScores & more!
Akasa Air is spreading holiday pleasure in the sky with the launch of its third annual Christmas special dinner from Café Akasa, the airline’s onboard dining service.
Café Akasa’s dynamic menu is continuously updated to accommodate a wide range of culinary preferences, with over 45 meal options available, including fusion cuisine, regional appetizers, and delicious desserts.
In keeping with its commitment to inclusive travel, Akasa Air accepts pets on board, whether in the cabin or cargo area.
Akasa Air introduced SkyBeats by Akasa, which provides a unique musical experience during aircraft boarding and deplaning. Crafted by local Indian musicians, the airline offers three distinct performances customized for different times of day – morning, afternoon, and evening – merging contemporary sounds with Indian overtones.
Akasa Air has created SkyLights by Akasa, which improves the customer experience by innovatively utilizing the lighting elements of the Boeing Sky Interior.
Furthermore, Akasa Air’s SkyScore by Akasa initiative gives updates on match scores from important sporting events throughout the year on board its flights.
QuietFlights offers peaceful late-night and early-morning flights; For flights from 22:00 hours to 06:00 hrs, Akasa Air has reduced announcements to necessary safety messages and changed cabin lighting to create a peaceful ambiance, allowing customers to enjoy uninterrupted leisure and privacy.
Tail Note
In conclusion, Akasa Air’s journey in the Indian aviation market is a bit like assembling IKEA furniture—it’s ambitious and comes with a few challenges, but when done right, it’s sturdy and here to stay. With its sleek fleet, competitive pricing, and a clear focus on passenger experience, the airline has quickly earned its wings in a sky crowded with competitors.
Now, as it plans to expand both domestically and internationally, Akasa seems ready to climb even higher—hopefully, with less turbulence and more snacks. If it keeps up this momentum, Akasa Air might just become the go-to choice for travelers looking for a smooth ride at 35,000 feet!
Feature Image by Harsh Tekriwal | Avgeekwithlens
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