Rakesh Jhunjhunwala's Akasa may purchase up to 100 Boeing 737 MAX aircraft: Report

Investor Rakesh Jhunjhunwala has said he will launch an airline that will have up to 70 planes within four years. (Illustration: Moneycontrol)

Akasa, a new airline backed by ace investor Rakesh Jhunjhunwala, is in talks with aircraft manufacturer Boeing to purchase up to 100 737 Max aircraft.

The airline is negotiating with Boeing, and has also approached the government to recertify the grounded aircraft, Business Standard reported. The Boeing 737 MAX aircraft were grounded in many countries, including India after two crashes killed several people.

The report said that each 737 MAX plane has a list price of around $100 million, but they are often sold at discounts for less than half of their market value.

"The company in its discussion with regulators has said it has made significant progress in negotiations with Boeing to acquire the 737 Max and intends to start operation by early 2022. For that purpose, the government needs to recertify the aircraft," a source told the publication.

Moneycontrol could not independently verify the story.

"We always seek opportunities and talk with current and potential customers about how we can best support their fleet and operational needs," a Boeing spokesperson told Business Standard.

Jhunjhunwala had recently told Bloomberg that the plan is to have 70 planes in the airline. He also said he is considering investing $35 million in the airline.

Former IndiGo President Aditya Ghosh will be the co-founder of Akasa, along with Jhunjhunwala and former Jet Airways CEO Vinay Dube.