Akasa News: Akasa Air ‘well-capitalised’, to add one aircraft every two weeks | India Business News
NEW DELHI: Akasa Air, the startup budget airline launched on August 7 with late Rakesh Jhunjhunwala as its biggest investor, has said it remains “well-capitalised” and will induct the ordered 72 aircraft over the next five years.
It will also place a “significantly larger” aircraft order in the next 1.5 years. The airline inducted its third Boeing 737 MAX on Tuesday.
“We will continue to grow our fleet by adding one new aircraft every two weeks. We at Akasa Air continue to mourn the passing of Jhunjhunwala, this is a deep personal loss. Thanks in no small part to Jhunjhunwala, Akasa is a well-capitalised airline with the financial means to induct 72 aircraft over the next five years,” Akasa founder-CEO Vinay Dube said.
“In fact, our financial platform is strong enough to allow Akasa to place an aircraft order in the next 18 months that will be significantly larger than our first. In simple terms, our growth is secure,” he added.
Industry insiders say Jhunjhunwala family holds about 47% stake in Akasa, followed by nearly 30% with founder-CEO Vinay Dube and the rest with other investors and staff.
The biggest investor’s demise was seen as a setback to the newborn airline. Akasa has sought to ally those concerns.
“We are also thankful that Jhunjhunwala supported us in recruiting some of the best aviation talent in the country. He wanted us to have a top-notch leadership team that made all day-to-day decisions at the airline without having to fall back on him or any other investor. Anyone that saw him on our inaugural flight on August 7 knows how proud he was of each Akasa employee and partner. On our part, we couldn’t be prouder and more fortunate to have known him,” Dube said.
He said Jhunjhunwala recognised India’s potential as one of the fastest-growing aviation markets in the world with “an unparalleled potential and decades of progress” ahead of us.
“He was a true believer in India’s potential and saw Akasa Air serving our nation by building the transportation links that will support India’s ongoing economic transformation. Akasa Air will honour Jhunjhunwala’s legacy, values, and belief in us by striving to run an extraordinary airline,” Dube said.