AkasaDate: 13 October 2021 Tags: Services
The Ministry of Civil Aviation has given NOC to Akasa airlines, which is backed by stock-market investor Rakesh Jhunjhunwala.
Akasa will be an ultra-low cost airlines owned by aviation venture SNV Aviation. Jhunjhunwala will own 40% stake in the venture.
The services are expected to be launched by summer next year. The company has hired former Jet Airways CEO Vinay Dube and ex-IndiGo president Aditya Ghosh to run the airline.
Vinay Dube is expected to be the CEO and Ghosh will be on the board as Jhunjhunwala’s nominee.
Jhunjhunwala is expected to invest $35 million in the new venture. The company is planning to have a fleet of 70 planes over the next four years.
Ultra low-cost carriers (ULCC)
In this model of airline, the company will keep the operating costs lower than typical budget airlines like IndiGo and SpiceJet.
The ULCC model will further unbundle services such as checked-in baggage, cabin baggage, etc other than seat selection, food and beverages.
It is difficult to run an airline on a ULCC model in India due to non-availability of no-frill airport terminals from where the lower costs are derived.
Such airports are common in Europe that makes it possible for airlines such as Ryan Air, EasyJet, etc to operate on this model.