Civil Aviation Min approves Akasa Air to operate in India
Ministry of Civil Aviation has given a no-objection certificate (NOC) to new airline named ‘Akasa Air’ for its operation in India.
Highlights
- Akasa Air is baked by Rakesh Jhunjhunwala as well as ex-Jet Airways CEO Vinay Dube.
- The new airline has set its aim to start operations by mid-2022.
- The airline has planned to operate approximately 70 planes in next four years.
About Akasa Air
Akasa Airline is a Ultra-low-cost carrier service (ULCC), which is being launched by Rakesh Jhunjhunwala. He holds a 40 per cent stake in the company. He has also onboarded aviation industry veterans like former Jet Airways CEO Vinay Dube and Aditya Ghosh, ex-IndiGo president. Vinay Dube is CEO of the Akasa company while Aditya Ghosh is expected to act as Jhunjhunwala’s nominee. This Mumbai-based investor is set to pump in $35 million. It is also planning launch a fleet of 70 planes in next four years. This airline will serve all Indians regardless of their socio-economic or cultural backgrounds.
ULCC model
ULCC stands for “ultra-low-cost carriers”. Under this airline business model, company focuses on keeping operating costs lower than the typical budget airlines such as IndiGo and SpiceJet. In low-cost carriers (LCC) model, airlines unbundle certain amenities which are usually associated with the full-service airline experience such as seat selection, food and beverages, etc. In the ultra-low-cost model, there will be more unbundling of services including checked-in baggage, cabin baggage, etc. LCCs operate with lower fares while ULCCs operate with minimal costs in order to ensure profitability.
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Month: Current Affairs - October, 2021