India’s low-cost startup airline Akasa Air will take slightly longer to begin operations than previously planned. A delay in acquiring its first aircraft, which is needed to get the Air Operator Certificate (AOC), has pushed back the launch by a few weeks.

Akasa to take off in July

The team at Akasa Air will have to wait a little longer to launch operations. The airline has already received the No Objection Certificate (NOC) from the government but needs its first aircraft to apply for an AOC.

Akasa had hoped to get the plane in the second week of April to carry out proving flights before getting the green signal to take off in June. However, its launch has now been pushed to July. The carrier’s CEO Vinay Dube told the Press Trust of India,

"As we get closer to the airline launch date, we can now confirm refined estimates on our timelines. We expect our first aircraft delivery by early June 2022, with the intention to start commercial operations in July 2022."

The airline maintains that the delay will have no bearing on future deliveries, with Akasa looking to receive more than 15 Boeing 737 MAX aircraft by March 2023.

Akasa Air MAX
The consistently sharp rise in jet fuel prices and a weak Indian Rupee has clouded the outlook of the Indian aviation industry, which is still struggling to recover from the pandemic. Photo: Akasa Air

Quick recap

The launch of Akasa has created a significant buzz within the aviation circles in India, with the carrier making substantial strides in the last year and a half, despite some skeptics questioning its timing during the pandemic.

Early in 2021, news of former CEO of Jet Airways and GoAir Vinay Dube wanting to start a new airline had started floating around. By then, he had already convinced Nikhil Ved, Jet’s former head of strategy and planning, to partner up with him.

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By May, Dube began talking with several investors and, by June, had already gotten Rakesh Jhunjhunwala, Per Capital, and some NRI investors on board. In November, Akasa placed an order for 72 Boeing 737 MAX aircraft at the Dubai Air Show and, a month later, unveiled its branding, revealing the aircraft livery, the company’s tagline, and spoke about its vision of welcoming passengers of all socio-economic backgrounds.

In January 2022, Dube squashed rumors of Akasa being an ultra-low-cost airline stating that they are happy competing in the segment of an LCC. The airline had envisioned starting operations this summer, and those plans still exist, albeit a little delayed.

Disruption in Indian aviation?

Speculation about Akasa Air stirring things up within the aviation sector in India are already being made. Although it’s far too soon to come to any conclusion, the airline’s swift progress in the last few months and robust ambitions have sparked all kinds of conversations.

In November 2021, CAPA said that the carrier would take at least another 3 to 4 years - once it scales up and achieves a competitive cost base - to cause any significant disruption. The airline also launches at a time when the DGCA has relaxed rules for new airlines to start international operations.

The aviation regulator earlier mandated the 5/20 rule, under which domestic airlines were required to have at least five years of operational experience and a minimum of 20 planes to fly overseas. Now, a new carrier can start flying internationally as soon as it has 20 planes in its fleet. Akasa plans to induct 20 airplanes by 2023, so international operations may not be too far down the airline's list of things to do.

However, we’ll get a better idea about the road ahead for the airline only once it launches service in July.

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