Come summer 2022, a new airline could be gracing India’s skies.
Akasa Air, an ultra low-cost-carrier (ULCC) is slated to begin operations in a few months’ time. Co-founded by “Big Bull” Rakesh Jhunjhunwala and former Jet Airways CEO Vinay Dube, Akasa secured an NOC from the Ministry of Civil Aviation (MoCA) and the Directorate General of Civil Aviation (DGCA) last month.
Anatomy of an Airline
Akasa is Dube’s brainchild. When he resigned as the CEO of GoAir (now Go First) last year, he had intentions to start his own airline. But thanks to COVID-19, he had no takers.
That changed in May when Jhunjhunwala came onboard, promising a hefty investment of ₹247.5cr ($35m), to be released in phases. The next early backer was Madhav Bhatkuly, the Founder of investment fund New Horizon, with ₹6.24cr ($848,776). Jhunjhunwala’s entry was a PR coup, given his clout on Dalal Street. Bhatkuly’s funding also turned heads – the Dubai-based investor has an impressive record of identifying big companies at an early stage (think Axis Bank, Godrej Consumer, Sun Pharma and Apollo Hospitals).
With the minimum paid-up capital (₹50cr ($6.8m)) in its kitty, Akasa filed for the requisite regulatory approvals. Meanwhile, it opened talks with Boeing for an order of 70×737 MAX jets and went on a hiring spree
Akasa’s core team reads like a who’s-who of Indian aviation. Besides Dube (who has held positions at Jet, GoAir, Delta and American Airlines), the list includes Aditya Ghosh (ex-IndiGo President), Praveen Iyer (earlier with Jet and GoAir), Belson Coutinho (a former VP at Jet), and Ankur Goel (former head of IndiGo’s treasury and investor relations).
The Art of the Deal
August was a notable month for the team. First came the NOC from Indian authorities, essentially green-lighting their venture. Then came news that the two-and-a-half-year-long ban on the 737 MAX would be lifted by the DGCA. That’s a great development for an airline whose entire fleet will consist of these…