MC Interview | Akasa Air to address pilots' flying-hour concerns by year-end: CEO Vinay Dube

Akasa Air CEO Vinay Dube and Chief Commercial Officer Praveen Iyer

India's newest carrier, Akasa Air, is confident that concerns around its pilots's flying hours will be addressed by the end of 2025, Chief Executive Officer Vinay Dube told Moneycontrol in an interview.

By year-end, the airline would be able to able to clock flying hours for its 775 pilots by taking delivery of new aircraft from Boeing.

In December 2024, some Akasa Air pilots approached the civil aviation ministry, alleging mismanagement, favouritism, harassment, and compromised safety standards in the airline’s pilot training and evaluation processes. Akasa Air termed them as "baseless and untrue."

Flying hours are important for pilots as most contracts offered by airlines are based on a hours-per-month payout, which means lower flying hours results in lower takeaway for pilots.

Edited excerpts of Moneycontrol's interview with Vinay Dube, Founder and CEO, Akasa Air, and Praveen Iyer, Co-Founder and Chief Commercial Officer.

Akasa Air has been in the limelight over pilot concerns over the last few months. How many pilots do you have on your roster at the moment and what steps are the airline taking to allay their concerns?

Vinay Dube: We currently have 775 pilots hired for flying, out of which approximately 60 percent are already logging flying hours. We do not just hope to increase this figure of 60 percent as new aircraft come in, but are confident that the vast majority of pilots will be clocking flying hours by the end of this year.

We can confirm that our 27th aircraft is on its way to India right now.

At Akasa Air, we are dedicated to fostering a workplace where our employees can thrive, ensuring that they remain at the heart of everything we do.

We conduct regular surveys and are in regular touch with all our employee groups to understand their sentiments. There is no large-scale discontent, and our pilots have consistently provided exceptional feedback. We continuously seek ways to enhance their experience, improve our processes, and ensure that our pilots feel valued and supported at every step.

We remain committed to building on the high levels of satisfaction our employees experience, without ever becoming complacent. Moreover, we are confident that there is no other airline in India or the rest of the world that can offer better career advancement opportunities to their pilots.

How many new planes Akasa Air is expecting to take delivery of in 2025-26, after deliveries have fallen significantly in 2024-25 so far?

Vinay Dube: We have stopped providing specific fleet guidance after our initial year of operations. Even with delivery delays, Akasa Air has delivered an extraordinary 300 percent growth, which is unmatched anywhere else in the world.

While we won’t share the exact delivery numbers, we can confidently say that Akasa Air will continue to be India’s fastest-growing airline for not just the current and next financial year, but in the foreseeable future.

We are in constant discussions with Boeing. They are good partners, and we continue to work with them in terms of expectations on how and when aircraft are delivered.

Is Akasa Air exploring opportunities in the secondary market to add aircraft?

Vinay Dube: No, we are not looking at leasing planes.

They come with a higher cost structure, and do not come with sale and lease-back gains. We don’t want an inflated cost structure and remain committed to maintaining a disciplined approach.

Our approach centres around operating a single fleet type, which is supported by an OEM (original equipment manufacturer) maintenance plan. This disciplined strategy allows us to optimise operational efficiency and control costs.

The discipline to maintain our cost structure, while ensuring consistent cash flows through sale and leaseback gains, is very important to us.

Our focus extends beyond one month, one quarter, or even two quarters as we are building something sustainable for the long term. Cost leadership remains one of our core pillars, and this decision aligns perfectly with that commitment.

Is there any fundraising plan in the near future for Akasa Air?

Vinay Dube: Thanks, in no small part to the Jhunjhunwala family, Akasa Air has been and will continue to be a well-capitalised airline.

Our financial indicators continue to progress ahead of our business plan. We have built a strong financial foundation and the future of Indian aviation looks brighter than ever.

Akasa Air forayed into international skies in a record period of 19 months of commencing operations. Having rapidly expanded our global footprint, we now operate to five international destinations and 22 domestic destinations.

We hope to launch between 5-10 domestic and international destinations in the next fiscal year.

In the last interaction with Moneycontrol, you had mentioned that Akasa Air does not plan to engage in predatory pricing and compete with incumbent carriers to increase its market share quickly. Can you share a bit more light on the airline’s growth strategy for the next couple of years?

Vinay Dube: At Akasa, we do not chase market share or think about competition. We are just focused on ourselves. Our focus isn’t just on growing for the sake of growth; it’s about growing while being India’s most on-time airline.

We aim to grow while having the most satisfied customer base, with a focus on both growth and profitability. We work towards the four pillars of our strategy - world-class safety, service excellence, employee centricity and cost leadership.

We're chasing financial stability in the long run. For that, one doesn't need to chase market share. In fact, India has immense untapped potential; we just want to ride that and provide better connectivity. We are building an airline for the long term that transcends generations.

Akasa Air currently serves around 25 domestic destinations within India and five international cities across the Middle East. How can we see the airline’s network expand by the end of 2025?

Praveen Iyer: We are committed to expanding our global footprint in the upcoming year. With a fleet capable of flying within a six-hour radius of India, we actively evaluate potential routes across the Gulf, Southeast Asia, East Africa, and beyond.

On the domestic front, we will continue to add more cities to our network and deepen our presence in key markets. By focusing on under-served routes, Akasa Air addresses the unmet demand in these regions and positions itself to tap into emerging markets with significant growth potential. Our strategy is to offer greater connectivity and meet the evolving travel needs of our passengers.

What roles will the upcoming Jewar and Navi Mumbai airports play in the growth plans of Akasa Air?

Praveen Iyer: Firstly, a dual airport system offers several strategic benefits to both consumers and airlines, and we truly appreciate the government’s efforts in continuously strengthening our infrastructure.

A diversified airport portfolio caters to a wide range of travellers and drives economic growth across different regions, ensuring that all parts of the country benefit from increased connectivity.

Jewar Airport, serving the Delhi-NCR region, will enhance our presence in the north and provide us with access to a major hub for both domestic and international routes. Navi Mumbai, on the other hand, will strengthen our operations in the Mumbai Metropolitan Region, allowing us to tap into the rising demand for air travel from the western part of the country.

The prospects for India’s aviation sector are very exciting, especially with the launch of new airports.

At Akasa Air, we plan to leverage both these platforms as part of our expansion strategy, providing more options and better connectivity for our passengers while contributing to the continued growth of the sector.

Being at the helm of Jet Airways and Go First in the past, what lessons have you learned?

Vinay Dube: The idea behind launching Akasa Air was to create an airline with these fundamental characteristics of having a robust cost structure and being well-capitalised, right from day one.

We’re on a very deterministic path to have the nation’s best cost structure. We are chasing financial stability. Financially, we are already ahead of our plans. This approach is designed to ensure that Akasa is not only sustainable but also profitable and enduring in the long term.

What other premium measures can we expect from Akasa Air in the future? Is the airline considering launching Wi-Fi onboard its domestic/international flights? Is a loyalty programme in the works?

Vinay Dube: We do not believe in the "full-service" and "low-cost" binary characterisations of an airline.

Akasa Air is one of India's most reliable carriers, offering modern aircraft with superior features, excellent legroom, top-notch food, and outstanding cabin crew service, embodying qualities typically associated with full-service carriers, which makes up for the Akasa Experience.

We plan to focus on the ecosystem which is more on recognition and rewards within the Akasa ecosystem. They include gestures like recognising frequent flyers during the boarding process or offering benefits to regular users of ancillary services. These efforts are fully within our control and will be implemented to ensure seamless delivery and customer satisfaction.

Once the internal rewards system matures, we plan to move to a partner ecosystem, where rewards and benefits could be offered in collaboration with other brands or services.

Akasa emphasises a philosophy of instant gratification rather than traditional loyalty structures, such as collecting points or miles for free tickets. We believe that customers today value immediate recognition and tangible benefits over delayed rewards, which aligns with our modern and customer-centric approach.

At this time, we are not pursuing the introduction of Wi-Fi, or a dual class configuration. Our immediate focus is on enhancing overall passenger experience by offering personalised travel and improving customer service.

How many corporate clients has Akasa Air on-boarded in 2024? What is the target for 2025?

Praveen Iyer: We witnessed more than 35 percent growth year on year (YoY) for our corporate portfolio, and secured 1,000 corporate deals in less than 2.5 years of operations.

This reflects our strategic efforts to expand our network and attract more corporate clients. Our focus on network expansion goes beyond simply increasing our geographic presence; it's about creating a robust and interconnected ecosystem that offers enhanced value to our corporate customers.

As a result, we have successfully drawn a diverse range of businesses, including small and medium enterprises as well as large multinational corporations.

What role does Akasa Air see the government playing in supporting the aviation industry? What more can be done by the government to support the domestic aviation market?

Praveen Iyer: The government plays a crucial role in supporting the aviation industry, and we see its progressive efforts as vital to the sector’s growth and sustainability. For India to achieve its vision of becoming the third-largest aviation market, the government's positive stimulus and efforts in the recent past have been noteworthy.

They have supported growth not only through investments in infrastructure but also through instrumental backing in terms of fair policies and business practices.

In terms of infrastructure, the number of airports in the country has increased from 74 in 2014 to 157 in 2024. The ministry of civil aviation (MOCA) has been encouraging states to reduce VAT (value-added tax) on ATF (aviation turbine fuel) and vouched for ATF to be brought under GST (goods and services tax). As a result of the ministry’s continuous efforts, all the 28 states charge VAT of only 1-4 percent on ATF .

Reduction in ATF tax rates across key states has helped airlines keep their costs in check.

Additionally, initiatives like the UDAN scheme, Nabh Nirman (to augment airport capacity), DigiYatra (for paperless travel) and AirSewa (for online grievance redressal) are also bringing in radical changes. These initiatives reassure the industry of being backed by a strong support system to be able to chart out the next phase of growth.

Continued focus on policy frameworks that foster healthy competition and ease of operations will benefit the entire aviation ecosystem, helping us continue to grow and serve the diverse needs of Indian travellers.

What specific measures do you think the government should adopt to avoid a duopoly?

Praveen Iyer: It is not about a monopoly or a duopoly; it’s about offering the best possible value and service to consumers at large.

India’s aviation market is growing rapidly, and we believe there is ample space for multiple successful players. Competition fosters innovation, improves service standards, and ultimately benefits passengers. At Akasa Air, our focus is on delivering an exceptional travel experience while maintaining a sustainable, customer-centric approach that ensures long-term success.

The government has been very supportive in creating a positive environment for growth, through policies and initiatives that facilitate healthy competition and foster the overall development of the aviation sector.