Akasa Air Has Financial Strength To Back Boeing Aircraft Order, Says CEO

The India growth story gives Akasa Air the confidence to place such a huge order, the CEO says.

(Source: Akasa Air Official X account)

Akasa Air is well capitalised and has the financial strength to back its order of 150 additional aircraft from Boeing, according to Chief Executive Officer Vinay Dube.

The company currently has a fleet of 22 aircraft in operation and expects to have a fleet of 226 by 2032, Dube told NDTV Profit's Sajeet Manghat.

It hasn't utilised the investment done by late billionaire and investor Rakesh Jhunjhunwala, according to him.

"The company has been saying for a long time now that it is capitalised and cash-flow positive," Dube said.

Manufacturers do not allow airlines to place an order if they don't have confidence in the financial strength of the airline, he said.

The India growth story, with a huge jump in travelling, improved infrastructure and growing demand, in addition to the support from employees, gives Akasa Air the confidence to place such a huge order, the CEO said.

The airline is not focusing on the market share and would rather deliver a good customer experience, Dube said.

It does plan to have an initial public offering, but needs a few more years, according to him.

While the rest of the industry has been facing complaints and angry customers, Akasa is keeping pace and has been number one in the last two months when it comes to flying on time, Dube said.

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WRITTEN BY
Pratiksha Thayil
Pratiksha covers markets and business news at NDTV Profit. She has a keen i... more
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