Akasa Air has strong financials to place order for more planes: CEO

Akasa Air is well funded and strong enough to place its second large aircraft order in 18 months, the airline’s founder and CEO Vinay Dube said in a statement on Wednesday.

The statement was issued to address stakeholder concerns following the death of its key investor Rakesh Jhunjhunwala on Sunday. The airline commenced operations on August 7.

“Our growth is secure,” Dube stated.

On Tuesday, Akasa Air received its third aircraft, which will be put into operation in the Mumbai-Bengaluru sector. “We will continue to grow our fleet by adding one new aircraft every two weeks. Akasa Air is a well-capitalised airline with financial means to induct 72 aircraft over the next five years. In fact, our financial platform is strong enough to allow Akasa to place an aircraft order in the next 18 months that will be significantly larger than our first,” Dube added.

Jhunjhunwala infused over Rs 260 crore in the airline, which also counts US-based hedge fund PAR Capital Management, stock market investor Madhav Bhatkuly, corporate lawyer Berjis Desai, and ex-chief investment strategist of Reliance Capital Madhu Kela as co-investors.

The Jhunjhunwala family holds stakes in the airline through three discretionary trusts. His wife Rekha, too, is a shareholder.

Dube also credited Jhunjhunwala for recruiting some of the best aviation talents in the country. “He wanted us to have a top-notch leadership team that made all day-to-day decisions at the airline without having to fall back on him or any other investor,” he added.