Akasa Air Sets Sights on International Operations in Late Q1 2024 and Plans Major Aircraft Order
Indian carrier Akasa Air (QP) is gearing up for international operations, with plans to commence flights by the end of March 2024. CEO Vinay Dube shared key details, including an upcoming significant aircraft order, as the airline positions itself for expansion.
Key Points:
- Aircraft Order Announcement: Akasa Air is set to unveil a substantial “three-digit” aircraft order in the coming weeks. The order will span deliveries from mid-2027 to the end of 2032, signaling the airline’s long-term growth strategy.
- International Operations Timeline: While the airline initially targeted the end of 2023 for international operations, the revised timeline aims to begin flights to destinations such as Doha, Kuwait, Jeddah, and Riyadh by the end of March 2024. Additional phases will include Bangladesh, Sri Lanka, Nepal, and the Maldives.
- Government Authorizations: Akasa Air secured approval from Indian authorities in September for international operations and obtained traffic rights for Saudi Arabia, Kuwait, and Qatar. However, the airline is awaiting authorizations from the respective governments.
- Fleet Expansion: The carrier’s current fleet comprises nineteen B737-8s and one B737-8-200. An additional 56 Boeing 737s (52 -200s and 4 -8 models) are on order, with plans for two deliveries by the end of 2023, 18 in 2024, and the complete fleet in place by mid-2027.
- International Destinations: Initial international routes will cover key Middle Eastern cities, while subsequent phases will include South Asian destinations.
- Market Positioning: Akasa Air aims to establish itself as “India’s cost leader” without specific market share targets. The focus is on operational efficiency and maintaining a competitive edge.
- Funding Strategy: The airline’s CEO emphasized that Akasa Air currently does not require additional cash, highlighting a positive net cash position. The airline’s financial position remains robust, and there are no plans for divestment by the family of key investor Rakesh Jhunjhunwala.
As Akasa Air charts its course for international operations and unveils its substantial aircraft order, the airline’s growth trajectory and market positioning will be closely watched in the aviation industry.