Akasa Air plans to expand in the Middle East with direct flights to Riyadh and Jeddah

In January, Akasa Air became the first airline to place a triple-digit order of aircraft on Indian soil at the WINGS India 2024. Akasa placed an order for 150 MAX aircraft with Boeing.

Akasa Air's Founder and CEO, Vinay Dube, stated in an interview with CNBC-TV18 that the airline is confident of obtaining foreign government permissions to start operations in Riyadh and Jeddah in the Middle East in a relatively short period. Dube mentioned that the approval process won't take nine months or a year, but rather a lot shorter, possibly later this summer.

Akasa Air, which is one of India's newest commercial airlines, is all set to start its international operations on March 28. The airline will debut on the international route by launching direct flights from Mumbai to Doha in Qatar.

According to Dube, Akasa is the most customer-centric airline in the country. As per the Directorate General of Civil Aviation (DGCA) data, Akasa is also the most punctual airline. Dube believes that as long as Akasa continues to prioritize customer satisfaction, there will be no issue in creating a name for the airline, even in a crowded market.

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Akasa is also looking to expand to more overseas routes in the coming financial, and the founder and CEO believes that international travel in India will grow 'much faster' than domestic travel. "We are living in a country where the youth really wants to travel abroad, so I think international travel in India is going to grow much faster than domestic travel, and we are very excited that this is the first of the many international destinations to come in the coming financial year," Dube said.

Akasa Air is preparing for its international flights, but the CEO has not yet set any revenue targets. The airline has ambitious plans for international operations and has capable aircraft in the fleet that can fly to Hong Kong, Indonesia, parts of China, East Africa, and various CIS countries. The CIS is made up of Belarus, Kazakhstan, Kyrgyzstan, Russian Federation, and Tajikistan.

Akasa has already won bilateral rights to begin operations in Kuwait and Saudi Arabia, but the airline has not yet announced when these routes will start. The CEO explained that it takes several months to get certain regulatory approvals from international regulatory bodies. However, the airline is hoping to get international permission to start operations to Riyadh and Jeddah soon. The CEO stated that he expects to launch operations at these destinations in the latter half of the summer.

The airline is not currently exploring codeshare agreements and believes that India can generate international traffic on its own.

Dube confidently stated that international travel in India is expected to grow faster than domestic travel. He further added that the airline plans to add many new international destinations in the upcoming financial year.

When asked about pilot shortage and new Flight Duty Time Limitation (FDTL) norms, Dube reiterated that the airline has no shortage of pilots, with over 700 pilots currently employed. He also mentioned that Akasa is ahead of every regulatory requirement and they will work out a way to comply with the new FDTL norms.

Regarding the financial situation, Dube mentioned that as a Private Limited company, they cannot provide guidance on revenue which is one of the advantages they have. However, Akasa has a very strong cash position. They have established a robust foundation on their business model and cash. Dube expects that by the end of FY24, Akasa will achieve a growth trajectory that has never been seen before in the history of global aviation. Additionally, he anticipates that Akasa will become India's most punctual airline by the end of FY24.

In January 2024, Akasa Air made history by becoming the first airline in India to place an order of over one hundred aircraft at the WINGS India event. Akasa ordered a total of 150 MAX aircraft from Boeing. The airline's CEO, Aditya Ghosh, expressed his confidence in the timely delivery of the aircraft, which is expected to arrive in the financial year 2025. He also mentioned that the new aircraft will help the airline grow as per their plan and improve the overall passenger experience with additional amenities like USB Type-C charging ports.

While the CEO did not divulge any details about specific domestic destinations, he did confirm that Akasa Air plans to expand to more domestic routes and increase the frequency of flights to existing cities in the future.