NewDelhi: Billionaire and ace investor Rakesh Jhunjhunwala is all set to launch cheap airline “Akasa Air” with nearly 70 aircraft, within four years in India. Just like he is bullish on stocks he is super bullish on-air travel opportunity in India too.
Jhunjhunwala, who is looking to invest around $35 million with 40% ownership rights of the carrier, he is expecting to get a no-objection certificate (NOC) from aviation ministry in the next 15 days, told Bloomberg Television during an interview on Wednesday. His ultra-low-cost airline will be known as “Akasa Air” and he had already teamed with former senior officials of Delta Air Lines Inc., and eyeing planes that can carry at least 180 passengers, he said.
It’s a bold bet by Ace investor, who is also popularly known as India’s Warren Buffett, in a market that has witnessed some airlines collapsed due to intense fare wars and high recurring costs. But, Jhunjhunwala is optimist and looking at opportunities to woo Indian flyers with a brand-new low-cost carrier offering low fares. India was once touted as world’s fastest-growing aviation market by the analysts due to the rising aspirations of its middle income population.
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Rakesh said, “to remain frugal one needs to start off fresh,” and “I’m very, very bullish on India’s aviation sector in terms of demand.”
Meanwhile, India has seen many airlines grounding due to high operation cost. One of the glaring examples was Kingfisher Airlines Ltd, at one time it was India’s second largest domestic carrier, but it ended its operations 10 years back in 2012, and once market leader Jet Airways India Ltd., which was recently approved for flying again, grounded in 2019 due to its debts and mismanagement.
Optimist, Rakesh Jhunjhunwala, shrug off the popular saying about airlines and its owners given by the owner of Virgin Atlantic head.
“If you want to be a Millionaire, start with a billion dollars and launch a new airline.” Richard Branson
Post pandemic all the airlines are struggling in India like Vistara, which was jointly owned by Singapore Airlines Ltd. and Indian conglomerate Tata Group, are in discussions with Boeing Co. and Airbus SE to hold the aircraft deliveries and adjust payment schedules. IndiGo, India’s largest and best operated airline, reported a wider-than-expected decline in its revenue due to Covid19 disruption.
But, Jhunjhunwala, seems undeterred and more than bullish, and said that “I’ve got some of the best airline people in the world as my partners for this low-cost airline.”
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