India’s Richest Stock Investor Will Launch Low-Cost Airlines: Launch Date, Aircrafts & More

The Indian business magnate and stock trader Rakesh Jhunjhunwala is backing up a new Indian budget airline carrier, Akasa, which climbed to advanced discussions with the American airline manufacturer Boeing Co., to buy about 70 737 Max jets.

This deal with Akasa could push Boeing as a major market dominator in Indian aviation which is currently ruled by Airbus SE.

While Boeing is very much looking towards the deal, the talks are not yet finalized and the deal stands at a staggering point.

This is because the Rakesh Jhunjhunwala-backed Akasa is currently seeking initial approval from the Indian aviation ministry.

Here are all the details you need to know about the ongoing deal.

Akasa Airlines to Buy 737 Jets from Boeing

In an interview with Bloomberg Television last month, Jhunjhunwala informed that over the next four years, his new airline will garner and operate a fleet of 70 flights.

In regards to this, the stock investor’s new airline project is in conversations with Boeing Co. for purchasal of 737 Max jets. 

 Jhunjhunwala is also discussing deals with Airbus’ best-selling jets, A320neo jets but due to unavailability of the model even until some years down the line, the balance rolls more towards Boeing’s favour.

Jhunjhunwala’s plans to operate 70 flights in another four years, would lead to an order of 70 units of 737 jets Max-8 jets, which would cost about $8.5 billion at sticker prices.

People familiar with the matter have also committed that Boeing is likely to offer ‘steepr-than-usual’ discounts on this deal with Akasa.

Boeing always seeks opportunities and consistently talks with current and potential customers about how it can best support their fleet and operational needs, states a Boeing rep.

Currently, there are discussions progressive for an estimated amount of 80 aircrafts, which could roll off within the upcoming seven months.

Akasa is in talks with the Indian aviation ministry for initial approval. Both Boeing and the U.S. Federal Aviation Administration have held discussions with the Indian Directorate General of Civil Aviation regarding the 737 Max jets’ return to service, as two flight crashes leading to 346 deaths were caused in the 737 Max in 2019.

As soon as the Indian aviation ministry approves the regulatory approval for Akasa, the business will formally start between the Rakesh Jhunjhunwala-backed new airline and Boeing.

Besides the billionaire stock investor, Aditya Ghosh, a former head of market leader IndiGo, and Vinay Dube, a former executive at Delta Air Lines Inc. and a former chief of Jet Airways have backed Akasa too, states Bloomberg.