Akasa Air of India Engages in Discussions for Additional Boeing Jet Order
Akasa Air, India’s newest airline, is reportedly in talks with Boeing Co. to place a small follow-on order for 737 Max single-aisle jets. However, the discussions are contingent on the airline securing financing for the potential deal. Anonymous sources familiar with the matter anticipate that the negotiations will reach a finalization during the ongoing Paris Air Show. Both Boeing and Akasa Air have declined to comment on the matter.
One of the main challenges for Akasa Air is securing the necessary funding. The airline recently faced setbacks due to the unfortunate passing of its billionaire founder, Rakesh Jhunjhunwala, as well as the failure of India’s Go Airlines. These events have made aircraft lessors cautious about further investment in the Indian aviation market. Nevertheless, if financing can be secured, Akasa Air may proceed with ordering 10 or fewer 737 Max aircraft.
Akasa Air started operations just last year and has already received 20 out of the 72 Max jets it previously ordered. In March, the Chief Executive Officer of Akasa, Vinay Dube, expressed the airline’s intention to place a substantial order for additional aircraft before the end of the year. However, the insolvency of Go Airlines has raised concerns among aircraft lessors. Making it more challenging for Akasa Air to secure the necessary funding.
The aviation industry in India is experiencing intense competition, and recently, the newly-privatized Air India Ltd. has placed significant orders. Additionally, Market leader IndiGo is preparing to make an announcement at the Paris Air Show. It is expected to place an order for 500 planes. This order would effectively double its current jet backlog. These developments highlight the dynamic nature of the Indian aviation market.
The future funding of Akasa Air remains uncertain following the passing of its founder, Rakesh Jhunjhunwala. The airline will need to overcome these obstacles to solidify its position in the highly competitive Indian aviation industry. Negotiations with Boeing are ongoing, and it remains uncertain whether Akasa Air can secure the necessary financing to successfully expand its fleet with additional Boeing 737 Max jets.
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