Akasa Air Aims for IPO by the End of the Decade as it Expands Fleet and Services

Akasa Air

Akasa Air is gearing up for an initial public offering (IPO) by the end of this decade. The airline plans to launch international services by the end of the fiscal year. They have ordered 76 Boeing 737 MAX aircraft. It seeks to gather more operational history before taking the IPO leap. With a current fleet of 20 aircraft, Akasa Air has its sights set on a three-digit aircraft order by the end of 2023. The airline is already generating free cash from its operations. It indicates a strong financial foundation.

Fleet Expansion and International Ventures

Akasa Air has ambitious plans to expand its fleet substantially, aiming to have 76 aircraft by mid-2027. This expansion will enable the airline to become a prominent player in both the domestic and international markets, with multiple operating bases across India.

"Akasa Air, which is in a very exciting phase, has received approval from the government to operate flights to Riyadh, Jeddah, Doha and Kuwait, and expects to start international services soon" – Vinay Dube, our Founder and CEO. Read the full story here. @IndianExpress…

— Akasa Air (@AkasaAir) October 20, 2023

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The airline has secured international flying rights to destinations including Riyadh and Jeddah in Saudi Arabia, Doha in Qatar, and Kuwait. These rights will pave the way for Akasa Air’s entry into international operations in the near future.

Going Public: A Realistic Goal

While Akasa Air’s CEO, Vinay Dube, acknowledges that a listing in 2027 may be too soon, the company is determined to go public. The aim is to accumulate more operational history and experience before officially listing the airline. A more realistic timeline for the IPO could be before the end of the decade, indicating the company’s commitment to achieving this milestone.

Challenges and Growth

Akasa Air recently faced challenges with the abrupt exit of around 40 pilots who did not serve their notice periods. This led to flight cancellations, and the airline has initiated legal action against the pilots involved. Despite these setbacks, Akasa Air remains in growth mode.

The airline has reported flying over 5.17 lakh passengers, securing a domestic market share of 4.2 percent, according to recent official data. The carrier has also received orders for additional Boeing 737-8 jets. This further expands its fleet capacity.

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In June, Akasa Air added four more Boeing 737-8 jets to its existing order of 72 aircraft. It brings the total to 76 aircraft, including 23 Boeing 737-8s and 53 Boeing 737-8-200s. This expansion will significantly contribute to Akasa Air’s growth and its ability to compete in the Indian and international aviation sectors.