Over a year since the outbreak of Covid-19 disrupted the sector, the Indian aviation industry is set to welcome two new players — the second incarnation of Jet Airways and Akasa, backed by Dalal Street ace Rakesh Jhunjhunwala. While both are still finalising detailed plans, their entry underscores the appetite for the Indian airlines segment at a time when existing players are struggling because of muted demand for travel.
Akasa’s entry
An ultra-low-cost carrier (ULCC), Akasa is the brainchild of ace investor Rakesh Jhunjhunwala. With a 40% stake in the company, Jhunjhunwala reportedly plans to launch Akasa by next April. He has already brought on board several industry veterans, including former IndiGo president Aditya Ghosh and former CEO of Jet Airways, Vinay Dube. While Dube is likely to become CEO, Ghosh will be Jhunjhunwala’s nominee on the board. The investor will pump in a reported $35 million, and has plans for a 70-strong fleet in four years. The airline expects the Ministry of Civil Aviation’s no-objection certificate in the next few days.
