Airliners-India Forum Index Airliners-India
Flickr Group & Facebook
 
 FAQFAQ   SearchSearch   MemberlistMemberlist   UsergroupsUsergroups   RegisterRegister 
 ProfileProfile   Log in to check your private messagesLog in to check your private messages   Log inLog in 

Akasa Air News -- Part 1

 
Post new topic   Reply to topic    Airliners-India Forum Index -> Civil Aviation
View previous topic :: View next topic  
Author Message
747-237
Member


Joined: 11 Jun 2007
Posts: 10782
Location: Gordon Gekko's Boardroom

PostPosted: Fri Aug 06, 2021 8:23 am    Post subject: Akasa Air News -- Part 1 Reply with quote

Starting up a new thread to keep things streamlined.



https://www.ch-aviation.com/portal/news/106575-indias-akasa-air-to-start-ops-by-ye21-after-ministry-nod

Akasa Air to start ops by YE21 after ministry nod

05.08.2021

Akasa Air, the Indian low-cost carrier planned by billionaire investor Rakesh Jhunjhunwala and a number of executives from other Indian airlines, has - a source told the financial channel CNBC-TV18 on August 4 - received the no-objection certificate it was waiting for from the Ministry of Civil Aviation and the Directorate General of Civil Aviation.

However, in a LinkedIn post on August 5, Economic Times journalist Tarun Shukla claimed that the venture's chief executive, former Jet Airways (JAI, Mumbai Int'l) CEO Vinay Dube, had told him that the certificate had not yet been granted but that he hoped it would be soon.

Nevertheless, the start-up aims to commence flight operations by the end of 2021, the CNBC source said. Akasa Air is expected to be based out of Bangalore Int'l with a route network that is initially fairly close to the city including destinations such as Chennai, Hyderabad Int'l, and Mumbai Int'l.

The would-be carrier has been in talks with manufacturers and is likely to build a fleet of Boeing narrowbodies, probably leasing B737 MAX aircraft, the source claimed. Once an aircraft acquisition deal is secure, it will apply for an air operator’s certificate (AOC).

“Lower lease rentals due to Covid-19 and a weaker salary structure are likely to lead to lower expenses, which works in favour of a new airline such as Akasa Air. However, the uncertain demand environment due to the pandemic could be a risk factor,” one of the sources said.

Akasa Air plans a fleet of 70 aircraft after four years. Jhunjhunwala is expected to own a stake of almost 40% and is considering sinking USD35 million into the venture. While Dube will be its chief executive, former IndiGo Airlines (6E, Delhi Int'l) chief Aditya Ghosh will sit on the board.

_________________
10000 posts (and counting) on Airliners-India.

Back to top
View user's profile Send private message
vikramv2
Member


Joined: 22 May 2008
Posts: 434
Location: Powai,Mumbai

PostPosted: Fri Aug 06, 2021 4:43 pm    Post subject: Reply with quote

Is it not a better idea to start with say A220 100/300 or E190/E195 and test the waters for a few years before the 737 MAX. I would assume that the a220/E195 would have better operating economics in routes other than Metro cities as competition is cut throat in the top 6-7 cities in the country. Because cost is everything for a ULCC, i feel the MAX is a wrong way to start probably
_________________
http://airliners1.com

Visit my photostream @flickr at http://www.flickr.com/photos/26842543@N07/

Back to top
View user's profile Send private message Send e-mail
iah87
Member


Joined: 17 Apr 2007
Posts: 2506

PostPosted: Tue Aug 10, 2021 7:41 pm    Post subject: Reply with quote

ULCC carriers can hope to get better yields on volume, which is not possible on smaller aircraft. A220 or Embraer 190 may be ok for many routes in India where there is less competition.

This airline does not need the range of 737 Max for most routes, but right now that is one of few aircraft which has larger capacity.

Either way, if Akasa succeeds in starting, Indian aviation will go with one more round of uncertainty and near predatory pricing.
Back to top
View user's profile Send private message
747-237
Member


Joined: 11 Jun 2007
Posts: 10782
Location: Gordon Gekko's Boardroom

PostPosted: Thu Aug 12, 2021 9:21 am    Post subject: Reply with quote

https://www.ch-aviation.com/portal/news/106782-indias-akasa-air-eyes-up-to-100-b737-max-report

Akasa Air eyes up to 100 B737 Max - report

12.08.2021

Akasa Air has received its no-objection certificate from India’s Ministry of Civil Aviation, has hired more veterans from defunct carrier Jet Airways (JAI, Mumbai Int'l), and is now in talks with Boeing (BOE, Chicago O'Hare) to acquire up to one hundred B737 MAX aircraft, local media reported.

The start-up low-cost carrier, backed by billionaire investor Rakesh Jhunjhunwala, has also approached the Indian government to recertify the grounded aircraft type, Business Standard reported.

Boeing conducted its first test flight to recertify the MAX in China on August 11, but it remains grounded in many countries, including India, after two crashes in Indonesia and Ethiopia in 2018 and 2019 claimed 346 lives.

“The company in its discussions with regulators has said it has made significant progress in negotiations with Boeing to acquire the 737 MAX and intends to start operations by early 2022. For that purpose, the government needs to recertify the aircraft,” a source told the newspaper.

Each MAX has a list price of around USD100 million, but they are often sold at discounts of less than half of their market value, the source claimed.

In July, India’s Directorate General of Civil Aviation allowed Boeing to fly the MAX through Indian airspace but not to land, and the Hindu Business Line reported at the time that the authority remained unconvinced about the aircraft type’s safety.

Jhunjhunwala told Bloomberg in an interview on July 28 that the start-up planned to operate 70 aircraft within four years and confirmed that he was considering investing USD35 million in the airline.

Besides former Jet Airways CEO Vinay Dube now in position as Akasa Air’s chief executive and ex-IndiGo Airlines president Aditya Ghosh as a board member, a source told Moneycontrol that former Jet Airways and GoAir exec Praveen Iyer would be chief commercial officer and former GoAir revenue management chief Anand Srinivasan its chief information officer.

Jet Airways veteran Belson Coutinho will head marketing; another ex-Jet Airways manager Bhavin Joshi will be senior vice president for finance and leasing; and one more, Neelu Khatri, will head government affairs, the unnamed source said. Other Jet Airways alumni reportedly hired at Akasa include Adam Voss to head engineering, Ajit Baghchandani to helm inflight services, and Floyd Gracious to oversee flight operations.

_________________
10000 posts (and counting) on Airliners-India.

Back to top
View user's profile Send private message
The_Goat
Member


Joined: 03 Mar 2007
Posts: 3219
Location: South of France

PostPosted: Tue Aug 17, 2021 1:02 pm    Post subject: Reply with quote

So how UL is this so-called ULCC going to be?

Would they be selling BOM-DEL return for the price of a Rajdhani express ticket, or will they undercut even that?

I doubt that with all the taxation on aviation in India anything ULCC would be sustainable in the long run. What happened to Gopi's Air Deccan is an example. He was talking about Re 1 tickets and flying all-economy A380s in India.

The best this Akasa affair can hope for, should they get off the ground, is a low frill (not low-cost) operation like IndiGo.
_________________
I don't know which is the more pampered bunch : AI's widebodies (the aunties) or Jet's widebodies (the planes).
-Jasepl
Back to top
View user's profile Send private message
747-237
Member


Joined: 11 Jun 2007
Posts: 10782
Location: Gordon Gekko's Boardroom

PostPosted: Wed Oct 13, 2021 8:23 am    Post subject: Reply with quote

https://www.ch-aviation.com/portal/news/108632-indias-akasa-air-secures-noc-courts-airbus-as-well

Akasa Air secures NOC, courts Airbus as well

11.10.2021

India’s government has given Akasa Air, the start-up ultra-low-cost carrier backed by billionaire Rakesh Jhunjhunwala, the vital No Objection Certificate (NOC) it needed to proceed, local media reported on October 11.

The Ministry of Civil Aviation issued the document, which allows the nascent airline to apply to the Directorate General of Civil Aviation for an Air Operator’s Permit (AOP) ahead of plans to commence flight operations next summer.

Jhunjhunwala and his wife Rekha met Prime Minister Narendra Modi in Delhi on October 5, an evening encounter that Modi posted with a photo on Twitter with the words: “Delighted to meet the one and only Rakesh Jhunjhunwala... lively, insightful, and very bullish on India.”

SNV Aviation Pvt Ltd, the company behind the Akasa Air brand name, has reportedly been in talks with Boeing to acquire around one hundred B737 MAX aircraft. It also boasts Vinay Dube, Aditya Ghosh, and other seasoned Indian aviation veterans among its management team.

In August, the civil aviation authority allowed the MAX to fly again in India. Although details about Akasa Air, including decisions on aircraft orders, have not formally been disclosed, the company appears to be heading towards one of the biggest deals of the year to acquire purchased or leased B737s.

However, Christian Scherer, chief commercial officer at Airbus, told the Press Trust of India, as reported by the newspapers Business Line and Business Standard: "We are not in the business of countering offers, but we are having conversations with Akasa. Of course, we are.” Asked what stage the talks were at, he replied: “That is really private. What I can tell you is that when you start an airline in India, what’s the benchmark you’re looking at. It’s pretty obvious, isn’t it? It’s IndiGo Airlines.”

The ch-aviation fleets advanced module shows that IndiGo currently operates seventy-nine A320-200s, 130 A320-200Ns with another 202 on order, and forty-four A321-200NXs with another 354 on order. It also operates thirty-three ATR72-600s with twenty on order.

Jhunjhunwala told local media in late July that Akasa Air would place orders for up to 70 aircraft.

Boeing did not immediately respond to ch-aviation’s request for comment and Airbus declined to comment.

Akasa Air plans to offer flights across India starting in the summer of 2022, it said in a statement issued to local media on October 11, with the aim of being “the nation’s most dependable, affordable, and greenest airline.” It pledged a “warm, efficient, reliable, and affordable travel experience.”

Dube commented in the statement: “We will continue to work with the regulatory authorities on all additional compliances required to successfully launch Akasa Air. Having a robust air transportation system is critical for our nation’s progress. Akasa Air will serve all Indians regardless of their socio-economic or cultural backgrounds, with warmth, inclusiveness, and respect.”

_________________
10000 posts (and counting) on Airliners-India.

Back to top
View user's profile Send private message
747-237
Member


Joined: 11 Jun 2007
Posts: 10782
Location: Gordon Gekko's Boardroom

PostPosted: Tue Nov 16, 2021 7:15 pm    Post subject: Reply with quote

https://timesofindia.indiatimes.com/business/india-business/rakesh-jhunjhunawalas-airline-akasa-orders-72-boeing-737-max-at-dubai-air-show/articleshow/87739647.cms

Akasa orders 72 Boeing 737 Max

Nov 16, 2021

Billionaire investor Rakesh Jhunjhunwala-backed startup airline Akasa has chosen the Boeing 737 Max.

The airline placed an order for 72 of these aircraft worth $9 billion at list price at the Dubai Air Show on Tuesday.

Aircraft deliveries will begin early next year, when the airline hopes to start flying.

Earlier this year, the Directorate General of Civil Aviation (DGCA) had cleared the Max to fly to, from, within and over India. As of now SpiceJet is the only Indian carrier that has the B737 Max but none of those planes are flying yet.

Akasa has got the vital no objection certificate from India, following which it will now apply for air operator permit from the DGCA and hopes to start flying next summer.

The proposed ultra low cost carrier (LCC), SNV Aviation Pvt Ltd that will fly under the brand name Akasa Air, is piloted by aviation veteran Vinay Dube who is its CEO.

In a statement recently, the upcoming airline said it “plans to offer flights across India starting in the summer of 2022 with an endeavour to be the nation’s most dependable, affordable and greenest airline.”

_________________
10000 posts (and counting) on Airliners-India.

Back to top
View user's profile Send private message
747-237
Member


Joined: 11 Jun 2007
Posts: 10782
Location: Gordon Gekko's Boardroom

PostPosted: Tue Nov 16, 2021 7:17 pm    Post subject: Reply with quote

https://boeing.mediaroom.com/2021-11-16-Akasa-Air-Orders-72-Fuel-Efficient-737-MAX-Airplanes-to-Launch-Service-in-Fast-Growing-Indian-Market

Akasa Air Orders 72 Fuel-Efficient 737 MAX Airplanes to Launch Service in Fast-Growing Indian Market

- New Indian carrier's order valued at nearly $9 billion, includes 737-8 and high-capacity 737-8-200



Nov. 16, 2021 /PRNewswire/ -- Boeing [NYSE:BA] and Akasa Air, a brand of SNV Aviation, today announced the new Indian carrier has ordered (72) 737 MAX airplanes to build its fleet. Valued at nearly $9 billion at list prices, the order is a key endorsement of the 737 family's capability to serve the rapidly growing Indian market.

At the 2021 Dubai Airshow, Akasa Air CEO Vinay Dube said, "We are delighted to partner with Boeing for our first airplane order and thank them for their trust and confidence in Akasa Air's business plan and leadership team. We believe that the new 737 MAX airplane will support our aim of running not just a cost-efficient, reliable and affordable airline, but also an environmentally friendly company with the youngest and greenest fleet in the Indian skies."

Dube added, "India is one of the fastest-growing aviation markets in the world with an unparalleled potential. We are already witnessing a strong recovery in air travel, and we see decades of growth ahead of us. Akasa Air's core purpose is to help power India's growth engine and democratize air travel by creating an inclusive environment for all Indians regardless of their socio-economic or cultural backgrounds."

Akasa Air's order includes two variants from the 737 MAX family, the 737-8 and the high-capacity 737-8-200.
Providing the lowest seat-mile costs for a single-aisle airplane as well as high dispatch reliability and an enhanced passenger experience, the 737 MAX will ensure Akasa Air has a competitive edge in its dynamic home market.

"We are honored that Akasa Air, an innovative airline focused on customer experience and environmental sustainability, has placed its trust in the 737 family to drive affordable passenger service in one of the world's fastest-growing aviation regions," said Stan Deal, Boeing Commercial Airplanes president and CEO. "The 737 MAX, with its optimized performance, flexibility and capability, is the perfect airplane to establish Akasa Air in the Indian market and ensure it effectively grows its network."

The 737 MAX family delivers superior efficiency, flexibility and reliability while reducing fuel use and carbon emissions by at least 14% compared to airplanes it replaces. India's growing economy and expanding middle class will fuel strong demand for commercial flights, driving the need for more than 2,200 new airplanes in South Asia valued at nearly $320 billion over the next 20 years, according to Boeing's 2021 Commercial Market Outlook forecast.

About Akasa Air

Akasa Air will be the most dependable airline in India, offering efficient customer service, reliable operations, and affordable fares - all in the Akasa Way. Akasa Air's empathetic and youthful personality, employee-friendly culture, customer-service philosophy, and a tech-led approach will make this commitment a reality for all Indians. The carrier plans to offer commercial flights starting in the summer of 2022 and use its new fleet of 737s to meet the growing demand across India.

_________________
10000 posts (and counting) on Airliners-India.

Back to top
View user's profile Send private message
747-237
Member


Joined: 11 Jun 2007
Posts: 10782
Location: Gordon Gekko's Boardroom

PostPosted: Thu Nov 18, 2021 7:32 am    Post subject: Reply with quote

https://timesofindia.indiatimes.com/business/india-business/akasa-orders-cfm-engines-worth-4-5-billion-for-its-72-boeing-737-max/articleshow/87758753.cms

Akasa orders CFM engines worth $4.5 billion for its 72 Boeing 737 Max

Nov 17, 2021

Akasa Air has ordered CFM's LEAP-1B engines valued at $4.5 billion at list price for the 72 Boeing 737 Max it had ordered at the Dubai Air Show on Tuesday.

CFM will maintain Akasa Air’s engines for high technical dispatch reliability. The LEAP-1B engine entered into service on the Boeing 737 MAX in 2017.

More than 600 aircraft have been delivered to some 66 operators worldwide and the fleet has logged more than 25 lakh engine flight hours.

Akasa Air CEO Vinay Dube said: "We are extremely pleased to partner with CFM International as we embark on an exciting journey," Dube added.

CFM International EVP Philippe Couteaux said: "We are proud to develop a strong relationship with Akasa and play a key role in the launch of their operations, by providing them with the industry-leading asset utilization, fuel efficiency, and overall cost of ownership."

In a statement, CFM said: "Since CFM delivered the first CFM56 engines in the early 90’s, the company has been

developing a trustful relationship with major Indian Airlines and playing a key role in Indian domestic market continuous growth. To date, nearly 600 engines are operated by airlines from the Indian subcontinent and more than 1,700 LEAP engines are on order."

_________________
10000 posts (and counting) on Airliners-India.

Back to top
View user's profile Send private message
The_Goat
Member


Joined: 03 Mar 2007
Posts: 3219
Location: South of France

PostPosted: Thu Nov 25, 2021 4:21 pm    Post subject: Reply with quote

Somehow I get a bad feeling everytime an airline that doesn't even exist goes ahead and orders 72 aircraft. The bad feeling gets worse if the said airline is an Indian one.

How did they come up with the number 72? Based on what planning? Do they know where they are going to operate? Do they have the airport slots?

I hope Akasa knows what it is doing. I'm not in a mood to give them any benefit of doubt.

If I were in Mr. Jhunjhunwala's place, I would have considered acquiring SpiceJet. It's better to deal with an existing airline that has the assets, slots, routes and everything else in place but is in the dire need of cash infusion, than starting a new venture from scratch.
_________________
I don't know which is the more pampered bunch : AI's widebodies (the aunties) or Jet's widebodies (the planes).
-Jasepl
Back to top
View user's profile Send private message
iah87
Member


Joined: 17 Apr 2007
Posts: 2506

PostPosted: Thu Nov 25, 2021 9:35 pm    Post subject: Reply with quote

The_Goat wrote:
Somehow I get a bad feeling everytime an airline that doesn't even exist goes ahead and orders 72 aircraft. The bad feeling gets worse if the said airline is an Indian one.

How did they come up with the number 72? Based on what planning? Do they know where they are going to operate? Do they have the airport slots?

I hope Akasa knows what it is doing. I'm not in a mood to give them any benefit of doubt.

If I were in Mr. Jhunjhunwala's place, I would have considered acquiring SpiceJet. It's better to deal with an existing airline that has the assets, slots, routes and everything else in place but is in the dire need of cash infusion, than starting a new venture from scratch.


Even Boeing and CFM know that this order may not be fully completed but they are just hoping against hope. This is not the first time that an Indian airline announced grandiose plans only to scale it down or just disappear.

Compared to this Jet 2.0 restart appears more rational.

Apparently it is easier to start a new business in the airline industry in India than to buy an existing one. And I thought it was complicated to start any new business in India, especially in a regulated industry like the airline industry.

It may be pride, ego and also the pain in dealing with the existing airlines that is preventing anyone from buying existing airlines. Also Akasa wants to replicate success of Indigo which started from scratch, but Indigo at that time did not have any airlines in the scale of Spice Jet or GoFirst to buy into.
Back to top
View user's profile Send private message
Display posts from previous:   
Post new topic   Reply to topic    Airliners-India Forum Index -> Civil Aviation All times are GMT + 5.5 Hours
Page 1 of 1

 
Jump to:  
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum


Powered by phpBB © phpBB Group. Hosted by phpBB.BizHat.com