During the Dubai Air show this year, Rakesh Jhunjhunwala’s upcoming airline venture Akasa Air placed an order for as many as 72 Boeing 737 Max aircraft at a price of $9 billion. Akasa Air’s owner SNV Aviation, which is backed by the stock market maverick, is planning to build up on its fleet for the rapidly growing Indian aviation market. Akasa’s recent order is the largest following the 737 Max grounding, as well as one of the largest orders that the 737 Max family has ever received. The order includes two types of aircraft from the 737 Max family — the 737-8 and the high-capacity 737-8-200 aircraft. Akasa Air is set to be launched next year and has already received nod from authorities.
“We believe that the new 737 MAX airplane will support our aim of running not just a cost-efficient, reliable and affordable airline, but also an environmental friendly company with the youngest and greenest fleet in the Indian skies,” said Akasa Air CEO (chief executive officer) Vinay Dube, after the announcement was made on Tuesday.
“India is one of the fastest-growing aviation markets in the world with an unparalleled potential. We are already witnessing a strong recovery in air travel, and we see decades of growth ahead of us,” he added.
India’s growing economy and expanding middle class will fuel strong demand for commercial flights, driving the need for more than 2,200 new airplanes in South Asia valued at nearly $320 billion over the next 20 years, according to Boeing’s 2021 Commercial Market Outlook forecast.
Here are the key things to know about Akasa Air and its recent order for 72 Boeing 737 Max aircraft
– Akasa Air, owned by SNV Aviation, is backed by ace stock investor Rakesh Jhunjhunwala. He owns 40 per cent stake of the company and is the co-founder of the airlines, along with Aditya Ghosh, former president of Indigo Airlines. Ghosh owns 10 per cent stake of Akasa Air.
– Akasa Air plans to launch aviation services in the commercial sector of India by the summer of 2022 and has got a green signal from the ministry of civil aviation and the DGCA for the same.
– The carrier plans to offer the greenest aviation services in India. On this note, we must know that the Boeing Commercial Airplanes has said its 737 Max family provides superior efficiency, flexibility and reliability while reducing fuel use and carbon emissions. The company claims that the carbon emission is up to 14 per cent less when compared to other aircraft. Vinjay Dube, former CEO of Jet Airways, has 15 per cent share to the company.
– Akasa Air would be an ultra low cost aircraft service, aimed to serve the needs of fliers on a budget. “Akasa Air will be the most dependable airline in India, offering efficient customer service, reliable operations, and affordable fares, the company said in a release.
– In a release made earlier this year, Akasa Air said that it plans to operate 70 airplanes over the next four years.
– No announcement has been made regarding the routes of the airlines yet. However, it is likely that Akasa Air will serve all the major air routes in the domestic area to attract more clients.
– The Boeing 737 Max 800 aircraft is the same one that the Directorate General of Civil Aviation (DGCA) had grounded in March 2019, following deadly accidents associated with the aircraft. During the same time, three Indians and 154 other people died due to a crash of the Ethopian Airlines 737 Max plane.
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