Dubey told TOI that an application has been sought from the aviation ministry for a no-objection certificate (NOC) – the forerunner of airline licenses – for “SNV Aviation”, which will be the holding company for the proposed budget airline “Akasa Air”. “We are working with the ministry in accordance with the regulations to ensure that we are complying with all required filing requirements and hope that Night We will be provided soon,” Dubey said.
While Jhunjhunwala will invest around $35 million (about Rs 260 crore) and hold around 40% stake, there will be other investors on the board. The ultra-low cost airline plans to have a fleet of 70 aircraft in four years.
“For company culture to be frugal you have to start afresh. I am very, very optimistic on India’s aviation sector in terms of demand. I think some wage growth players may not be okay. Jhunjhunwala told Bloomberg Told that I have got some of the best airline people in the world as my partners.
This double logic – India is the fastest growing aviation market globally before the pandemic, and supported by the weak financial position of all airlines here except IndiGo. Bye And Wadia Group – Explains the timing of the new venture. The pandemic has pushed the airline industry into its biggest existential crisis ever.
Air India’s disinvestment process is witnessing a big churn in the Indian airline industry. Tata is widely seen as the frontrunner to achieve AI and eventually a mega carrier that merges all three – AI, Vistara and AirAsia India. IndiGo, despite sending its net worth into the negative territory of Covid, is waiting on the orders of a strong war chest and hundreds of aircraft to take to the skies once travel resumes. Other airlines are trying to raise money to survive.
Excited at India’s aviation prospects, the Akasa team was doing its bit during the entire pandemic 2020. Jhunjhunwala himself has spoken to leading aviation professionals to know about the intricacies of starting and running an airline. “He called sometime last year and introduced himself, wanting to know about the industry,” said an industry insider.
Dubey has held senior positions at GoAir. Jet Airwayshandjob delta and American Airlines in a career spanning more than 30 years. He has worked out the technical blueprint with a team of trusted collaborators which to name a few Jet-I. It remains to be seen whether Akasa hits the skies before Jet-II. Dubey was the CEO of Jet-I, founded by Naresh Goyal, when it was grounded in April 2019.
Virgin Atlantic founder and British billionaire Richard Branson The famous once said: “If you want to be a millionaire, start with a billion dollars and start a new airline.” Desi Branson Vijay Mallya went bankrupt after launching Kingfisher. On remembering this proverb, Jhunjhunwala told bloomberg tv: “When I first entered the stock market in 1985, they said that the best way to go bankrupt was to go to the stock market. By the grace of God it has been proved wrong.” Jhunjhunwala is currently worth around $4.6 billion (a little over Rs 34,000 crore).
While Mallya could not prove Branson wrong, it remains to be seen whether India’s own Warren Buffett does.
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