Now Reading: Akasa Air secures Rs 740 crore ECLGS loan from IndusInd
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Akasa Air secures Rs 740 crore ECLGS loan from IndusInd
Akasa Air has secured a Rs 740 crore working capital loan from IndusInd Bank under the government-backed Emergency Credit Line Guarantee Scheme, The Hindu BusinessLine reports. It is the second Indian airline,…
The Story in Brief
Akasa Air has secured a Rs 740 crore working capital loan from IndusInd Bank under the government-backed Emergency Credit Line Guarantee Scheme, The Hindu BusinessLine reports. It is the second Indian airline, after SpiceJet, to access the scheme. The airline plans to use the funds for normal operations and says it remains well-capitalised.
Akasa, which completed four years of operations, runs 40 Boeing aircraft across 36 destinations. It has added 10 aircraft in the past year and expects three more this month. The airline has also launched Akasa Elevate, a loyalty programme offering priority services, exclusive benefits and flexible flight changes. It plans to add two destinations this financial year, while founder Vinay Dube retains an ambition to pursue an IPO within two to four years.
The Indian Opinion
The easy story is that a government-backed loan proves Akasa is either failing or receiving special treatment. Neither follows from the reported facts. The airline faces higher fuel and foreign exchange costs, but says demand has held up and it is expanding its fleet. The sharper test is whether added aircraft improve profitability without forcing passengers to absorb every cost, and whether the proposed IPO still looks credible within two to four years.
Sources (2): thehindubusinessline.com, thehindubusinessline.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
