Akasa Air Intends To Go Public By End Of Decade, Says CEO Vinay Dube

Dube said that the airline is looking at flying internationally by the end of the current fiscal and has placed an order for 76 Boeing 737 Max aeroplanes, set to join the fleet by mid-2027.

Akasa Air plans to list in the stock market by the end of the decade, the airline’s chief executive officer, Vinay Dube, said. The Indian airline is set to soon start flying on international routes and will also place a three-digit aircraft order, the airline’s CEO noted. Notably, the airline currently operates over 750 weekly flights spanning 16 domestic destinations, including Mumbai, Ahmedabad, Bengaluru, and Delhi. 

In conversation with PTI, Dube said that the airline is looking at flying internationally by the end of the current fiscal year and has placed an order for 76 Boeing 737 Max aeroplanes. These new aircraft are expected to join the fleet by mid-2027. Currently, Akasa Air operates a fleet of 20 aircraft, he said. 

Taking about the airline’s mid-term goals, Dube said, “The airline is already generating free cash from operations and is well-funded for the new aircraft order it is going to place. As a timeframe, by mid-2027, the airline expects to have 76 planes.The aim is to be a pan India player with a very healthy domestic and international network and multiple bases.”

Dube further said that the airline intends to go public by the end of the decade as that is a ‘much more realistic goal’. He said, “I don't think 2027 will be possible for a listing, but the listing is something that we definitely want to do. We may have to gather a little more history before we can list. Certainly, listing or an IPO is something that we would desire.” 

Notably, IndiGo and SpiceJet are the two operations scheduled carriers currently listed on the exchanges. Other two major airlines include, Jet Airways, stopped operations in April 2019 due to financial problems, and Go First, which was grounded after it filed for insolvency earlier this year. 

Akasa Air recently received global flying rights for Riyadh and Jeddah (Saudi Arabia), Doha (Qatar), and Kuwait. Dube stated, “ It will soon be starting overseas operations.We are in growth mode. We should have two more aircraft delivered before the end of this calendar year. We will exit the financial year with 25 aircraft. We will exit the following financial year with approximately 40 aircraft.”

Commenting about the funds for the three-digit order, the airline founder said, “The airline has funds to place the three-digit order and is also free cash flow positive. We also hear rumours about the Jhunjhunwala family leaving, which are absurd, and the family says that they are invested with us for the long run.”

Notably, Akasa Air recently faced some troubles after 40 pilots exited the airline without completing their notice periods which resulted in flight cancellations. The airline has since began legal action against the pilots. The latest official data revealed that Akasa Air flew 5.17 lakh passengers so far and controls a domestic market share of 4.2 per cent, the report said.