Dubai: India’s youngest airline Akasa Air, which made its foray into international skies in March this year, has grand plans for the UAE and the broader GCC.
This includes increasing frequencies from daily to double daily flights to different GCC destinations, hitting a city in the Gulf from three to four different points in India, and priming the airline’s offerings to take advantage of the upcoming unified GCC visa. And all this while keeping fares at affordable levels.
Despite recent announcements from Boeing regarding additional delays in the delivery of 737 Max aircraft, Akasa Air’s Founder and CEO, Vinay Dube, remains confident that the all-Boeing carrier is well-positioned for success in its international expansion plans.
“We are already in five destinations (in the region), but we see that expanding into many more regions. The Gulf is one of them, but we’re looking at expansion in every part of the world,” said Dube. The carrier operates a fleet of 24 aircraft.
Where is Akasa going next?
Akasa Air flies to five overseas destinations - Abu Dhabi, Doha, Jeddah, Kuwait City, and Riyadh - from Mumbai. It plans to add more international routes this year.
“Regarding the destinations we’ll go to, whether we’ll increase frequencies from daily to double daily flights, or hit a city in the Gulf from three or four different points in India, those specifics are hard to predict,” said Dube. However, the CEO said Akasa’s network growth will likely reflect the economic activities between India and the Gulf.
“Our growth tends to be closely correlated with economic flows between India and the various Gulf countries,” said Dube. “For example, as we see more investment in Saudi Arabia, it will be natural for us to follow.”
Additionally, the Gulf is increasingly focused on building its tourism sector, and the airline plans to support that development. “Many people don’t realize the hidden gems in Oman, or that you can have an amazing holiday in Ras Al Khaimah, which is almost on par with any island in the Caribbean,” he added.
“You can stay in top-tier hotels, enjoy a wide range of water sports, and experience the beautiful waters, all just three hours away from India.”
Praveen Iyer, Co-founder and Chief Commercial Officer of the airline said that by the end of the carrier’s fiscal year, it would be operating more flights to the Middle East and expanding towards Southeast Asia as well. (In India, Akasa Air reported a 10 basis points fall in its market share in July 2024 compared to June.)
Busy schedules
According to Neelu Khatri, co-founder and Senior Vice-President - International, in the approximately 120 days the airline has been operating in the Gulf sector, Akasa Air has completed over 330 flights.
“Our average passenger load factor has been around 70 per cent,” said Neelu. “We’ve also operated Hajj flights within this short period. About 45 per cent of our international travellers have been using connecting flights to destinations like Mumbai, Delhi, Hyderabad, Varanasi, Cochin, Lucknow, and others.
“In July alone, about 5 per cent of our flights and 11 per cent of our ASKs (Available Seat Kilometers) were internationally driven,” she said.
The airline managed these operational levels despite stiff competition from legacy Indian carriers operating in this space for decades.
Dube said, “Our strategy to compete is based on service and reliability, and we don’t see any difference between our domestic and international operations in that regard. We know we have strong competitors everywhere, but we are confident that we can create an experience that will keep our customers coming back for more.”
Fleet growth
For such ambitious growth plans, Akasa Air needs more jets and needs them fast.
Akasa Air currently operates a fleet of 24 Boeing 737 MAX 8 aircraft. The airline has placed orders for 202 Boeing 737 MAX jets, including 99 MAX 10s and 103 MAX 200s, with deliveries scheduled through 2032.
In July this year, Boeing notified some 737 Max customers that aircraft due for delivery in 2025 and 2026 would face additional delays.
Boeing’s ongoing delivery snags do not deter Dube. He said, “We’ve already received two aircraft this year and will continue to receive more this calendar year, certainly this fiscal year.
“We have a huge order book ahead, but we will continue to be among the fastest-growing airlines, even with some delays. By 2032, we’ll receive the remainder of the 202 aircraft yet to be delivered.”
The carrier also has yet to make plans to turn to the leasing market for more jets. “Not right now. This may change a few years from now, but now, no such plans are in place,” he added.
