Low-cost airline Akasa air to dominate aviation | Rakesh Jhunjhunwala backed aviation company

The flying planes in the blue skies show the spirit of human endeavors to accomplish the Impossible, but what if this flying in the air is made available to everyone like a common man, who earns a small penny for a living? Yes, this is made possible with low-cost airlines.

The Indian aviation sector is essential and unique in all global aviation because of India’s huge population. And all this vast population aspires to fly high dreaming towards blue skies just as their one day wish from life, like one famous Tamil-language drama film Soorarai Pottru inspired by the real-life events of G. R. Gopinath, founder of Simplifly Deccan, which was formerly known as Air Deccan, 

The rise of low-cost airlines in India :

The airline launched operations on 25 August 2003 with a flight from Bengaluru to Hubli. This way, the airline was the first Indian low-cost carrier in the Indian aviation sector. The airline appealed to middle-class travelers with low fares and an extensive route network. It employed several innovative methods to ensure the profitability of its business model.

After Taking inspiration from G. R. Gopinath’s business model, from 2017 The government of India started a scheme for the common man of India named RCS means regional connectivity scheme, also called UDAN, under the simple acronym of “Ude Desh ka Aam Naagrik” to boost the Indian aviation sector to the next level. 

The scheme was made with two objectives which will be achieved with the help of funding from both central and state governments. It started focusing on developing around 500 new regional airports for better regional connectivity and lesser traveling cost.

Role of private companies in low-cost airlines for regional aviation development :

Credit: EconomyHut research team.

Indigo is India’s largest passenger airline in India. Indigo dominated 54.7%, aviation market share as of June 2021, operating in India’s domestic air travel market as a low-cost carrier.

Indigo focuses on our three points – offering a low price for the customers, being on-time for 99% flights, and delivering a courteous and hassle-free experience to all who are visiting air aviation through their service.

With these great efforts, IndiGo has become an authentic version of with “being on-time”.

Recent developments in the low-cost airline sector in India?

The new aviation company Akasa Air is soon going to launch its operations in the low-cost airline’s sector in India with some ace investor’s mega bet and with the combination of some great and experienced brains in the aviation sector of India, such as Former Jet Airways boss Vinay Dube will own over 15 % and be the co-founder And the CEO of the Akasa Air company. 

Along with him, Former IndiGo chief Aditya Ghosh, who has spent more than a decade at IndiGo as the president and the whole time director, will hold less than 10% stake in the ultra-low-cost carrier. He will be having a board member designation for Akasa Air.

Along with him, Rakesh Jhunjhunwala, who is famously called, The big bull of the Indian share market. Rakesh Jhunjhunwala will be investing $35 million (around Rs 260 crore), and with this investment, he will be holding about a 40% stake in the Akasa Air company.

With the help of these expert brains, Indian aviation is expected to boost in the coming years. Some venture capitalists like American investor Par Capital Management which has investments in US-based ultra-low-cost carrier Sun Country Airlines and homestay aggregator Airbnb is also pumping money into Akasa air 

How is Akasa Air going to boost regional connectivity with the help of low-cost airlines in India?

The low-cost airline Akasa Air will have significantly fewer fares than some other flights like business class flights. They have planned to expand up to 70 aircraft with the company, catering to around 180 passengers in four years. This will help resolve quick transportation with the minor focus on unnecessary things like the luxury issues in the airline Industry.

Why do low-cost airlines need an hour for India?

The purchasing power parity of a single individual in India is less than the global standard, but it’s suitable to comfort all the livelihoods of the common man in India. But This lesser purchasing power creates so many class differences during the traveling periods, as the traveling involves hours of dependence on some other systems, which are not in our control like delays, traffic, cancellation.

This creates the economics facilities differences like for economics classes there is a difference to treat the peoples in all these issues than the class two or general class. The low-cost airlines will surpass all these issues, and quick travel and regional connectivity will be the sole motive of the airline company.

With the ease of traveling under the low-cost airlines, Indian aviation will support many pillars of the economy, quick delivery of goods and services, fast inter-connectivity, easy connectivity to some challenging terrains where roads or railway connectivity is costly for the government.

This is it, for now, hope the governments along with private companies collaborations will make the low-cost airline’s plans of common man accurate, till then. if you like the article then you can share the article on FacebookInstagram, and Twitter, and for any suggestions views, you can comment on us till then keep reading keep growing.

Leave a Comment