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Published by: Amity Research Centers
Published in: 2022

Abstract

In July 2021, India's billionaire Rakesh Jhunjhunwala had announced his plans to launch a low-cost carrier (LCC) Akasa Air in India. The airline was planning to begin operations in the summer of 2022. The basic objective of Akasa Air was to 'help power India's growth engine and democratise air travel by creating an inclusive environment for all Indians regardless of their socio-economic or cultural backgrounds'. The airline had placed a huge order of 72 Boeing 737 Max jets at the 2021 Dubai Air Show. This was regarded as one of the biggest orders for the Max plane across the globe and was also the biggest order post the grounding of Boeing 737 Max jets. Regarding its route which was yet to be finalised, Akasa Air was likely to focus on metro to Tier-2 cities. However, the aviation industry in India was badly impacted by the COVID-19 pandemic. Price wars between the carriers in India, high fuel and running costs, capital intensive business, etc., had compelled several airlines to run into huge losses. Against this background, would it be possible for Akasa Air to dominate the LCC space in the country's aviation market in the days ahead?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2021.

Geographical setting

Region:
Asia
Country:
India

Featured company

Akasa Air
Type:
Self-owned
Industry:
Airlines

Featured protagonists

  • Rakesh Jhunjhunwala (male), Founder
  • Vinay Dube (male), CEO

About

Abstract

In July 2021, India's billionaire Rakesh Jhunjhunwala had announced his plans to launch a low-cost carrier (LCC) Akasa Air in India. The airline was planning to begin operations in the summer of 2022. The basic objective of Akasa Air was to 'help power India's growth engine and democratise air travel by creating an inclusive environment for all Indians regardless of their socio-economic or cultural backgrounds'. The airline had placed a huge order of 72 Boeing 737 Max jets at the 2021 Dubai Air Show. This was regarded as one of the biggest orders for the Max plane across the globe and was also the biggest order post the grounding of Boeing 737 Max jets. Regarding its route which was yet to be finalised, Akasa Air was likely to focus on metro to Tier-2 cities. However, the aviation industry in India was badly impacted by the COVID-19 pandemic. Price wars between the carriers in India, high fuel and running costs, capital intensive business, etc., had compelled several airlines to run into huge losses. Against this background, would it be possible for Akasa Air to dominate the LCC space in the country's aviation market in the days ahead?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2021.

Geographical setting

Region:
Asia
Country:
India

Featured company

Akasa Air
Type:
Self-owned
Industry:
Airlines

Featured protagonists

  • Rakesh Jhunjhunwala (male), Founder
  • Vinay Dube (male), CEO

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