Akasa Air Gets Approval To Operate On International Routes: Report

The airline is reportedly preparing to launch international flights by December this year, and will start operations in the Middle East region initially.

International routes are more profitable for airlines because of less competition, and operating on overseas routes helps enhance the utilisation of aircraft.

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Akasa Air has reportedly received permission from regulators to operate on international routes. The low-cost airline is preparing to launch international flights by December this year, and will start operations in the Middle East region initially, Economic Times reported, quoting sources.

According to the ET report, the airline is yet to receive traffic rights from the government, following which it will need to secure approval from respective countries. Notably, flying rights are distributed on a bilateral reciprocal basis by the government to the airlines of their country. However, traffic rights on important India-Middle East routes like Dubai, Doha, etc., have already been fully utilised, creating a shortage issue for new players. Airlines are not permitted to operate more flights than they are allotted.

Airlines seek the licence to fly international routes as it provides a big boost to their growth trajectory. International routes are more profitable because of less competition. Additionally, operating on overseas routes helps enhance the utilisation of aircraft.

Earlier, regulators required airlines to operate for at least five years on domestic routes and possess a fleet of 20 aircraft for being eligible to apply for international flights. However, in 2016, requirement was modified and airlines were allowed to begin international operations once they deployed 20 aircraft or 20 per cent of their total capacity, whichever is higher for domestic operations. 

Things for Akasa Air started becoming problematic after a series of resignations of 43 pilots over the span of 2 months, the report noted. The carrier lost more than 1 per cent of the market share due to more than 630 flight cancellations last month itself. Recently, the airline moved Bombay High Court against the pilots stating that the resignations stand invalid as the pilots didn’t complete a notice period of six months, which is a part of their employment contract.