Akasa Air to buy aircraft in ‘three-digits’ for global expansion, but what challenges lie ahead?
Akasa Air is going to place an order for a fleet of aircraft which will be in three digits by the year-end, the company said. The company’s founder and CEO, Vinay Dube, also revealed that they intend to expand internationally and establish a learning academy in Bengaluru.
“By the end of the year, we will place a large order for aircraft. I’m not going to disclose the number but the order will be in three digits and it will be significant,” Vinay Dube said.
About Akasa Air
Airline
- Hubs: Kempegowda International Airport Bengaluru, Chhatrapati Shivaji Maharaj International Airport
- Founded: December 2021
- Founders: Rakesh Jhunjhunwala, Vinay Dube, Aditya Ghosh
- Headquarters: Mumbai
- Fleet size: 18
- Parent company: SNV Aviation Pvt. Ltd.
Currently, Akasa has ordered 72 aircraft, with 18 already delivered. Dube did not disclose the exact number of aircraft to be ordered, but emphasized that it would be significant.
In addition, the airline is planning to hire 300 pilots in the next year and open a learning center in Bengaluru. Dube stated that they will need at least 3,500 pilots in the next decade.
Akasa Air recently completed six months of operations and has become the fastest-growing airline in the country. The company operates 36 daily flights from Bengaluru and is now the third-largest domestic carrier in the city.
The Challenges and Difficulties Faced by Airlines in Going International
Going global can be challenging for any airline, and Akasa Air may face some obstacles as it plans to expand its operations globally. Some of the challenges that Akasa Air may face include:
- Competition: Akasa Air will face stiff competition from established global airlines that have been operating for years. These airlines have an established brand reputation, a loyal customer base, and a vast network of partnerships that can be difficult to compete against.
- Economic and political risks: Expanding globally can expose an airline to various economic and political risks, such as currency fluctuations, geopolitical tensions, and changes in trade policies. These risks can impact an airline’s profitability and growth prospects.
- Infrastructure challenges: International operations require significant investments in infrastructure, such as airports, maintenance facilities, and ground handling services. This can be challenging in countries with less developed aviation infrastructure.
- Regulatory hurdles: International aviation is heavily regulated, and airlines need to comply with various rules and regulations set by different countries. This can be a complex process and may require significant investment in legal and compliance teams.
One of the fastest-growing airlines in India, Akasa Air has the potential to become a global brand, despite various challenges faced by the airline industry including high fuel costs and layoffs.
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