Akasa Air Plans to Cut FY2024 Budget by Up to 20% Amid Cost-Control Efforts
Akasa Air, a burgeoning Indian airline based in Mumbai International, is set to scale back its budget for the financial year 2024-2025 by as much as 20%, signaling a strategic move towards enhancing cost efficiency. This decision comes just as the carrier is poised to expand its horizons with the launch of international flights, initiating a four-times-weekly service between Mumbai and Doha Hamad International.
In a conversation with the Press Trust of India (PTI), Akasa Air highlighted its commitment to maintaining the highest standards of safety, customer satisfaction, and employee welfare, ensuring that these critical aspects remain unaffected by the budgetary adjustments. The emphasis on prudent financial management reflects the airline’s dedication to sustaining its long-term viability and competitive edge in the aviation sector.
The budget recalibration aligns with Akasa Air’s operational milestones, notably marked by the airline’s international debut. SNV Aviation Pvt. Ltd., operating under the Akasa Air brand, disclosed a net loss of INR7.4 billion (USD89.3 million) for the fiscal year ending March 31, 2023, underlining the challenges faced by the carrier in a highly competitive market. Reports suggest that Akasa Air is in the process of securing approximately USD300 million in funding to bolster its financial footing and fuel its expansion plans.
The ch-aviation fleets module indicates that Akasa Air currently operates a fleet of 24 aircraft, consisting of twenty-three B737-8s and one B737-8-200, with a significant expansion on the horizon. The airline has placed orders for an additional 203 aircraft, including ninety-nine B737-10s, further B737-8s, and 103 B737-8-200s, underscoring its ambitious growth trajectory.
As Akasa Air navigates the complexities of the aviation industry, its proactive approach to budget management and strategic planning positions the airline to effectively address the evolving demands of air travel, both domestically and internationally.