What could work and what needn’t for Rakesh Jhunjhunwala’s airline venture

Rakesh Jhunjhunwala-backed Akasa Air has secured the crucial no-objection certificate (NoC) from the civil aviation ministry. He wants to set up the new airline in India on the optimism that more people will travel by air. The carrier expects to start operations next summer.

Billionaire investor Rakesh Jhunjhunwala, also known as Warren Buffet of India, has invested Rs 247.50 crore for a 40 per cent stake in an ultra low-cost carrier, Akasa Air. According to Forbes, Jhunjhunwala has an estimated net worth of $4.6 billion.

Another big name of Dalal Street, Madhav Bhatkuly, founder of investment fund New Horizon, has also has also invested around Rs six crore in the company. Bhatkuly is known for identifying big companies at early stage.