With the support of billionaire Rakesh Jhunjhunwala, Akasa Air is expected to start flying next year after getting the initial approval from the Ministry of Civil Aviation on Monday to launch the country’s latest low-cost carrier.
The approval comes at a time when the country’s aviation industry is reeling from the impact of the Govt-19 epidemic, with airlines losing billions of dollars, but the industry’s long – term prospects make the country a hot market for aircraft makers Boeing and Airbus.
SNV Aviation, which flies under the Akasa Air brand, has received a “no objection certificate” from the ministry and is expected to launch flights across India by the summer of 2022.
Akasa Air CEO Vinay Dube said in a statement that the airline will continue to work with regulatory authorities on all additional compliances needed for a successful launch.
The company did not elaborate, but under the requirements for starting an airline, it must obtain approval from the Directorate General of Civil Aviation, the Directorate General of Aviation.
Mr Jhunjhunwala, known as “India’s Warren Buffett” for his successful equity investments, has teamed up with Aditya Ghosh, former CEO of Indigo, the country’s largest carrier – and Mr. Tube to cater to the needs of domestic aviation.
Mr Tube is the former CEO of Jet Airways – once India’s largest private carrier before it stopped flying cashless in April 2019, lending to billions of lenders and leaving thousands jobless
Jet was recently expelled from bankruptcy. Mr Ghosh, who spent a decade with Indigo, was proud of Indigo’s early success.
Although details of the new venture, including no decision on aircraft orders, have not been formally released, Akasa is moving towards one of the largest deals to buy Boeing 737s it has already purchased or leased outside the United States. Announced in July.