Chief executive of India’s Akasa Air has announced that the company will place a “significantly” sizable order for brand-new narrow body aircraft this year as it seeks to capitalise on increasing domestic demand and launch international service. Out of a total order for 72 aircraft that must be delivered by March 2027, the 200-day-old airline has already taken ownership of 17 Boeing 737 MAX aircraft.
The newly placed order would be for narrowbody aircraft, according to the co-founder of Akasa and former CEO of the now-grounded, bankrupt full-service airline Jet Airways. The order plans come at a time when travel demand in India has experienced a dramatic recovery following COVID-19, giving the global aviation market the fastest growth rate, with capacity exceeding 2019 levels and passenger counts inching near.
In an effort to update its ageing fleet and compete with Gulf rivals like Emirates for international passenger business, Air India announced the largest single airline order ever on Tuesday, ordering 470 jets.
According to consultant CAPA India, Indian airlines are expected to acquire 1,500 to 1,700 jets over the next couple of years, with possibly 500 of those planes coming from IndiGo, the largest airline in the nation and a competitor of Akasa. In order to meet the requirements of the Indian government, Akasa must have 20 aircraft in its fleet by the end of the next three months, according to Dube.
According to Vinay Dube, the company will place another aircraft order before the end of this year that will be significantly larger than the existing order of 72 aircraft. Dube said Akasa will increase its fleet by three aircraft over the next three months bringing the total number to 20, making it eligible to travel to international locations in accordance with Indian government regulations. ‘’By the end of the year, we hope to be flying internationally, with the airline aiming for locations in South Asia, Southeast Asia, and the Middle East that are serviced by the 737 MAX, ’’ Dube added.
Following regulatory approval, the airline, which is 46% owned by billionaire entrepreneur Rakesh Jhunjhunwala, plans to begin flying internationally within a five to six-hour flight distance to India by the end of this year. However, Dube said the airline is still primarily focused on India, currently serving 14 airports and will capture 2.3 per cent of the domestic market by the end of 2022.
