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The Big Bull, Rakesh Jhunjhunwala, is now in the air

Rahul Gupta by Rahul Gupta
9 July 2022
in Trending
The Big Bull, Rakesh Jhunjhunwala, is now in the air
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As the country is going through rapid industrialization, the future of public mobility is also changing fast. Civil aviation, one of the fastest and most convenient modes of mobility, is one of the fastest-growing industries in India. Reports suggest that India has the third-largest domestic aviation market in the world. Following the growth in the aviation sector, many foreign and domestic aviation companies are in line to invest in India and the recent joinee in this sector is Rakesh Jhunjhunwala, the Big Bull of the Indian capital market.

Akasa Air got the nod to fly

According to the recently released press brief by Akasa Air, the Jhunjhunwala-backed airline company has got the Air Operator Certificate from aviation regulator DGCA (Directorate General of Civil Aviation).

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Akasa Air receives its Air Operator Certificate (AOC). Read more here: https://t.co/Rz0P5pIRbj

— Akasa Air (@AkasaAir) July 7, 2022

Akasa Air announced the news saying, “Akasa Air, India’s newest airline, today received its Air Operator Certificate (AOC) from the Directorate General of Civil Aviation (DGCA), Ministry of Civil Aviation, Government of India.

“The grant of the AOC is the final step of a comprehensive and rigorous process laid down by the DGCA and marks the satisfactory completion of all regulatory and compliance requirements for the airline’s operational readiness. Following the government’s initiative to usher in a new era of digitization, Akasa Air is proud to be the first airline whose end-to-end AOC process was conducted using the government’s progressive eGCA digital platform. The process concluded that the airline has successfully conducted a number of proving flights under the supervision of the country’s aviation regulator”, the brief added.

Vinay Dube, Founder, and Chief Executive Officer expressing his joy said “We are extremely thankful to the Ministry of Civil Aviation and the DGCA for their constructive guidance, active support, and the highest levels of efficiency throughout the AOC process. We now look forward to opening our flights for sale, leading to the start of commercial operations by late July. This will begin our journey towards building India’s greenest, most dependable, and most affordable airline”.

“We also want to take this moment to thank and acknowledge the collective contributions of our employees and partners whose commitment, perseverance, optimism, meticulous planning, and exemplary teamwork have helped us achieve this milestone. This is not just a significant milestone for Akasa Air and Indian aviation, but also a testimony to the story of a vibrant and resilient India”. he added.

Read More: The future of Indian Aviation will be dominated by Indigo, Tata, and Rakesh Jhunjhunwala’s Akasa Air

Rakesh Jhunhjunwala in the aviation sector

Vinay Dube, the CEO, and founder of Akasa Air was the one who convinced investors like Jhunjhunwala to invest in the new airline. Following his persuasion for the future of civil aviation in India, Jhunjhunawala was ready to invest $35 million for a 40% stake in Akasa Air. Vinay Dube started as an operation research analyst with American Airlines, the world’s largest airline by fleet size, was earlier CEO of Jet Airways and GoAir and he possesses great experience in the aviation sector.

With the plan to provide low-cost airline services in India, Akasa was envisaged during the pandemic times. After securing investments, Akasa Air got a No Objection Certificate (NOC) from the Ministry of Civil Aviation in October 2021 and in June 2022 received the first of its 72 Boeing 737 MAX aircraft.

According to the airline company, later this month, the airline will commence commercial operations with two aircraft, subsequently adding to its fleet, every month. By the end of the fiscal year 2022-23, the airline will have inducted 18 aircraft and thereafter 12-14 aircraft every 12 months, which will make up its order of 72 delivered over five years.

Read More: How an unassuming Marwari boy turned into a big bull called Rakesh Jhunjhunwala

The airline is the future of mobility

As the government is heavily pushing for the domestic civil aviation industry through various schemes like UDAN (Ude Desh Ka Aam Nagrik), it is expected that there is a mass shift going on in the Indian mobility sector. People who used to travel in sleeper coaches are now moving to AC classes and people from AC coaches are ready to shift to airlines. So, the government is already trying to incentivize domestic airline sectors to enhance the frequency of flights in regional areas.

Rakesh Jhunjhunwala, the master of capital market, bet in the airline sector signals the great push in the industry. According to a report titled ‘Travel market in India’ by RedCore, the travel market in India is projected to grow by USD 125 billion by 2027 and airlines will have a huge share in the sector. The Big Bull’s decision to fly with IndiGo, Air India, Vistara, AirAsia India, and SpiceJet is also focused on the future prospect of airline business in the country.

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Tags: airlineAkasa AirlineCivil SectorFuture MarketRakesh Jhunjhunwala
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