Rakesh Jhunjhunwala-Backed Akasa Air Orders 72 Boeing 737 Max Jets For $9 Billion

Akasa Air News: The Ministry of Civil Aviation had last month issued a No Objection Certificate (NOC) to Akasa Air to begin operations.

(Representative Image)

New Delhi: billionaire investor Rakesh Jhunjhunwala-backed airline firm Akasa Air is all set to launch its services in India. In order to begin operations, Akasa Air has placed an order with American aircraft manufacturer Boeing for 72 Boeing 737 Max aircraft. These 72 airplanes would be a part of Akasa Air's initial fleet.

According to Reuters, these 72 Boeing 737 MAX jets have been valued at nearly $9 billion at list prices.

In a joint statement, Akasa Air and Boeing shared, "Akasa Air's order includes two versions of the 737 Max family, the 737-8 and high capacity 737-8-200." According to reports, Akasa Air plans to offer flights across India starting the summer of 2022.

The mega order comes a month after the Ministry of Civil Aviation had issued a No Objection Certificate (NOC) to Akasa Air to begin operations. The proposed airline venture had applied for a NOC, AoP (air operator permit) and other permits from the Ministry of Civil Aviation.

However, there are several stages to get the overall clearances to start an airline venture in India.

Firstly, the proposed entity receives an NoC by MoCA, followed by a security background check, then an AoP is issued and thereafter the technical viability of the airline receives a safety clearance.

The airline venture is partly funded by stock market maverick Rakesh Jhunjhunwala, while ex-Jet Airways CEO Vinay Dube will manage the airline. Jhunjhunwala will be represented by ex-IndiGo boss Aditya Ghosh in the proposed airline's board.

"We are already witnessing a strong recovery in air travel, and we see decades of growth ahead of us," Akasa Air Chief Executive Vinay Dube said at the Dubai airshow, where the order was announced.

As per the information, the order by Akasa includes two variants - the 737-8 and the high-capacity 737-8-200.

"We are delighted to partner with Boeing for our first airplane order and thank them for their trust and confidence in Akasa Air's business plan and leadership team," Dube said.