- SUMMARY
- Akasa Air is looking to expand its international presence.
- It is on track to become a profitable carrier.
- In 2027, the airline will take the delivery of first Boeing 737 MAX 10.
Akasa Air, the newest major airline of India is looking to start more international flights, besides the Gulf region. The airline is planning to expand its international operations. It is considering launching services to South and Southeast Asia.
On Track to Profitability
Former IndiGo President and Akasa Air Co-founder Aditya Ghosh has said that the airline is on its way to becoming a profitable carrier. Akasa Air has not completed two years of operations, but it has more than 4,000 employees. It is the fastest Indian airline to approach the fleet size of 20 aircraft and start international operations. At present, it has a fleet of 24 aircraft.
Aditya Ghosh said that the airline is slowly transitioning into more of a customer-centric entity. To address the requirements and behavior of customers, it has taken lessons from the e-commerce companies in India. This helps the airline to better understand the minds of Indian consumers.
Akasa Air is on track to profitability. From reliability, on-time performance, load factors, and cancellations, the airline has tried to improve in all these sectors. He added that building a financially sustainable firm is crucial when creating an organization that prioritizes the customers and employees.
Akasa Air Eyeing Foreign Market Growth
With a fleet of 24 Boeing 737 MAX jets, the airline has entered international operations. It is currently operating international flights from Mumbai to Doha. From 15 June, it will launch flights from Mumbai to two cities in Saudi Arabia: Jeddah and Riyadh. Additionally, it will connect Jeddah to Ahmedabad. The airline has appointed United Al-Maha Travels as its General Sales Agent for Saudi Arabia.
Other than these cities, Akasa Air has the right to operate flights to Kuwait City. It will launch more international destinations in the Gulf. Additionally, it is exploring options for connecting India to South and Southeast Asia as well. Domestically, the airline sees a huge potential in the Tier-2/3/4 market.
Widebody Aircraft in Plans???
IndiGo has recently placed an order for the Airbus A350 aircraft. When asked whether Akasa Air will follow suit and order widebody aircraft, Ghosh cited the example of the strategy used by Rahul Dravid and Roger Federer. He stated that the airline will follow the basics, in a correct and consistent manner.
Utilizing one aircraft type in the fleet has consistently done well in the Indian market. IndiGo is the best example. In this scenario, the aircraft utilization is maximum with better cost management. However, he said that there is a market for full-service carriers.
Indian market is big and there is enough opportunity for well-managed airlines to grow. Now, the growth and success of an airline no longer relies on the failure stories of others.
The airline is set to take delivery of the first Boeing 737 MAX 10 in 2027. Despite the certification concerns, Akasa Air CEO Vinay Dube is confident about the delivery timeline. It will soon take the delivery of its 25th Boeing 737, which will be the second MAX 8-200 for India.
Conclusion: Akasa Air Profitability and International Expansion
Akasa Air Co-founder Aditya Ghosh confirmed that the airline is on its way to profitability. He said that Akasa Air is looking to enhance its international network in the Middle East. It is exploring international connectivity options in South and Southeast Asia. From 15 June, the airline will launch its operations to Saudi Arabia, with the launch to Jeddah and Riyadh.
What do you think about the future plans of Akasa Air? Discuss in the comment section.
With Inputs From Financial Express
Featured Image Credits: Akasa Air via Facebook
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