Akasa Air to place large plane order in 2023, eyes international growth
Akasa Air, India’s start-up budget airline, is planning to increase its fleet size with a “substantially” larger order for new narrowbody jets this year. The 200-day-old airline currently operates 17 Boeing 737 MAX planes, with 72 more to be delivered by March 2027.
During an interview, CEO Vinay Dube revealed that the order would be larger than the 72 planes already ordered, without giving a specific number. The move is in response to the booming demand in India and will allow Akasa Air to begin international flights.
Akasa’s co-founder, who formerly served as chief executive of now-defunct Jet Airways, announced an order for new narrowbody planes. Although the order was not specified for either Boeing or Airbus, budget carriers often opt for a single type of narrowbody plane in order to minimize costs.
Air India has placed an order for 470 jets, the largest by a single airline, as India’s travel demand has seen a sharp rebound post-COVID-19, making it the world’s fastest-growing aviation market. As the country’s capacity surpasses 2019 levels and passenger numbers approach pre-pandemic levels, Air India is looking to modernize its aging fleet to capitalize on the travel boom domestically, as well as to compete with Middle Eastern airlines such as Emirates for international passenger traffic.
Indian Airline Project
Indian airlines are projects to purchase between 1,500 and 1,700 planes in the next couple of years, as estimated by CAPA India. This includes a potential order of 500 planes by Akasa’s major competitor, IndiGo – the largest airline in India. To comply with Indian government regulations, Akasa will be adding three planes to its fleet within the next three months, bringing the total number of planes to 20 and thus making international flights a reality.
“By the end of the year, Akasa hopes to be flying internationally,” said Dube, “targeting destinations within the range of a 737 MAX in South Asia, Southeast Asia, and the Middle East.” The carrier will also focus on connecting smaller cities with the country’s major metros domestically, as demand for air travel remains strong despite high ticket prices. Dube expressed his optimism for the industry, saying, “Everything is growing gangbusters. The demand in India as a whole is going to continue to grow and grow and grow.”
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