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What is Akasa Air?
Akasa Air is an upcoming ultra-low-cost Indian airline co-founded by billionaire and stocks trader Rakesh Jhunjhunwala and former Jet Airways CEO Vinay
Dube.
Developments
In October 2021, Akasa Air received a 'no objection certificate' (NOC) from the Ministry of Civil Aviation. The NOC will be held by SNV Aviation, the holding company for the proposed airline.
The airline is now in the process of receiving the Air Operator Permit (AoP) certificate after aircraft acquisition and other required procedures.
Acquiring the NOC is the first stage, which is followed by a security background check after which an AoP is issued. Thereafter, the technical viability of the airline receives a safety clearance.
Akasa Air, backed by Indian billionaire Rakesh Jhunjhunwala, will begin flight operations in the next six months after receiving an AOC. The airline plans to operate approximately 70 planes in the next four years.
It is planning to launch flights in the summer of 2022 with an endeavour to be the nation’s most dependable, affordable and greenest airline. The airline is in talks with US aerospace giant Boeing for buying up to a hundred 737 Max aircraft.
Besides discussions with Boeing for planes, Akasa Air is also in talks with Airbus for potential orders from the Airbus A320 fleet.
Management and Investments
Rakesh Jhunjhunwala, known as "India's Warren Buffett" for his successful stock investments, partnered with IndiGo's Aditya Ghosh and Vinay Dube to launch the carrier to tap into demand for domestic air travel.
Former CEO of IndiGo Aditya Ghosh is associated with the venture as well and Praveen Iyer has been appointed chief commercial officer. Former Jet Airways executives Belson Coutinho, Adam Voss, Ajit Baghchandani will head marketing, engineering, inflight services respectively.
Ankur Goel, former head of IndiGo’s treasury and investor relations, will head Akasa Air as the Chief Financial Officer.
While Jhunjhunwala has invested Rs 247.50 crore in the airline, another big name of Dalal street, Madhav Bhatkuly, founder of investment fund New Horizon, has also invested around Rs 6 crore in the company.