Now Reading: Akasa Air plans IPO in 2-4 years, adds 10 aircraft
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Akasa Air plans IPO in 2-4 years, adds 10 aircraft
Akasa Air CEO Vinay Dube has said the carrier aims to list on stock exchanges within two to four years, as it marked four years of operations. The airline now operates 40…
The Story in Brief
Akasa Air CEO Vinay Dube has said the carrier aims to list on stock exchanges within two to four years, as it marked four years of operations. The airline now operates 40 aircraft to 36 destinations, making it the third largest domestic carrier behind IndiGo and Air India. It has added 10 aircraft in the past year and plans to accelerate that pace, with three planes arriving this month alone. Dube also announced a loyalty programme called Akasa Elevate, which allows passengers to earn points retrospectively from April 1. The airline has launched five new destinations this year, including Hanoi, and plans two more this fiscal.
The Indian Opinion
The talk of an IPO within four years is welcome, but the image of a smooth runway ignores the headwinds. Fuel costs remain volatile and Akasa admits it cannot pass on all costs to passengers. Some analysts paint the airline's growth as unblemished, but the reality is that profitability is far from assured. The real test will be whether Akasa can sustain its 30 per cent quarterly growth while keeping unit costs competitive. If fuel or forex spikes again, the IPO timeline may slip.
Sources (2): ndtvprofit.com, thehindubusinessline.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
