NEW DELHI: Boeing ’s inability to deliver its B737 MAX aircraft as promised has made the journey of India’s youngest airline Akasa , which turns two on Wednesday (August 7), a turbulent one. With 24 aircraft in its fleet currently — the last MAX delivered this Feb, — and just under 800 pilots on its rolls, the low cost carrier is facing growing resentment from pilots over issues like slow training and very low utilisation that has affected their pay cheques. With regulatory curbs on how many MAX it can churn out, Boeing is currently in no position to give a delivery schedule to customer airlines.
Akasa founder Vinay Dube told TOI he hopes “Boeing will be get its storied past back” under the newly appointed CEO and requested pilots to “be a little more patient” while promising them a “fulfilling career at India’s fastest growing airline.” Excerpts from the conversation:
Q) Akasa has 226 B737 MAX on order. What was the original fleet size expectation at the end of two years and where are we at present?
Ans) We have 24 aircraft and the last one was delivered this Feb. We have stopped giving (fleet) guidance… (Despite Boeing’s delivery issues) we are the fastest growing airline. In last fiscal, we saw our available seat km (ASKM) (a measure of an airline’s carrying capacity available to generate revenue) grow by 300%, breaking a 122 year record of airlines’ growth globally. This fiscal we expect to grow by 50%. No other carrier in India or globally has grown that fast. I am not looking at aircraft count alone as there are a number of things that allow us to grow capacity in ASKM terms.
Q) Are you looking at wet/damp/dry lease to overcome capacity challenges and how patient are you willing be with Boeing before you start looking at the alternate?
Ans) In the near term, till the first part of FY26, for sure we are not looking at any wet or damp leases. Despite that, we will still grow 50% this fiscal (in ASKM terms). We continue on the path of getting our Boeing aircraft. In the short or medium term we are not looking at inducting Airbus A320 family aircraft in out fleet. How patient we are going to be with Boeing depends on circumstances. If we get no MAX between now and end of the year, we have one degree of patience. If we get very close to our expectations, things are different. Patience depends on the level of expectation fulfilment.
Q) As a customer, what would you like to say to Boeing. Are they compensating Akasa for the delays?
Ans) We welcome Boeing’s new leadership. We have high hopes that Boeing will get back back to its storied past. Look forward to participating with them on this journey. Boeing is being a good partner to our story (regarding compensation for delays).
Q) Many Akasa pilots are unhappy for genuine reasons like slow training and low pay package due to less flying by getting allowance for the fixed minimum flying hours. Some have been sitting at home for as long as a year and are looking for options. How do you plan to allay their concerns?
Ans) You are right that there are a number of pilots that are not flying (line released) yet and we are in the process of changing that. Training is yet to start for only 21 of our under 800 pilots. Everybody else is part of the training mix order. These 21 joined much more recently. We are a very fast growing airline. What I would say to them is be a little more patient. When people look back on us 10 years from now, they would have enjoyed a very fulfilling career at one of India's best airlines and that they would be senior pilots in a highly employee centric organisation.
Q) Akasa was to shift to Terminal 1 in Delhi. Do you think IGIA T1 should have both domestic and international flights for the sake of both passengers and airlines?
Ans) We had this unfortunate incident at T1 (when a part of it collapsed). We were all set along with many other airlines to move to T1 that comes with more slots, aircraft parking stands and an increased footprint for us and others in Delhi. Unfortunately, there has taken a bit of a setback. We’re in very close touch with Delhi Airport management. As far as having both domestic and international operations from the same terminal goes, that is a better option not just in Delhi but everywhere. As an airline; as customers, we’d be better off if that way.
Q) What is your current network like and what growth potential do you see for Indian aviation?
Ans) As of now, we fly to 22 domestic and four international destinations (Abu Dhabi, Doha, Riyadh and Jeddah. Kuwait flight start on Aug 24). Our international load factors are 75% plus. Given the way our GDP is growing, demand will far outstrip capacity for a very long time. India has some of the world’s lowest fares and we are very reasonably priced. Due to supply chain issues we had got 13 MAX with some front rows in 2x2 and remaining in 3x3. By this October all but two of our planes will be in a single (all 3x3) configuration.
Q) Akasa has been talking to investors. What is your funding status?
Ans) We are very well financed, well funded. To give you a data point, we started with a certain amount of capital and today we have more than that initial amount of capital in our bank account.
Akasa founder Vinay Dube told TOI he hopes “Boeing will be get its storied past back” under the newly appointed CEO and requested pilots to “be a little more patient” while promising them a “fulfilling career at India’s fastest growing airline.” Excerpts from the conversation:
Q) Akasa has 226 B737 MAX on order. What was the original fleet size expectation at the end of two years and where are we at present?
Ans) We have 24 aircraft and the last one was delivered this Feb. We have stopped giving (fleet) guidance… (Despite Boeing’s delivery issues) we are the fastest growing airline. In last fiscal, we saw our available seat km (ASKM) (a measure of an airline’s carrying capacity available to generate revenue) grow by 300%, breaking a 122 year record of airlines’ growth globally. This fiscal we expect to grow by 50%. No other carrier in India or globally has grown that fast. I am not looking at aircraft count alone as there are a number of things that allow us to grow capacity in ASKM terms.
Q) Are you looking at wet/damp/dry lease to overcome capacity challenges and how patient are you willing be with Boeing before you start looking at the alternate?
Ans) In the near term, till the first part of FY26, for sure we are not looking at any wet or damp leases. Despite that, we will still grow 50% this fiscal (in ASKM terms). We continue on the path of getting our Boeing aircraft. In the short or medium term we are not looking at inducting Airbus A320 family aircraft in out fleet. How patient we are going to be with Boeing depends on circumstances. If we get no MAX between now and end of the year, we have one degree of patience. If we get very close to our expectations, things are different. Patience depends on the level of expectation fulfilment.
Q) As a customer, what would you like to say to Boeing. Are they compensating Akasa for the delays?
Ans) We welcome Boeing’s new leadership. We have high hopes that Boeing will get back back to its storied past. Look forward to participating with them on this journey. Boeing is being a good partner to our story (regarding compensation for delays).
Q) Many Akasa pilots are unhappy for genuine reasons like slow training and low pay package due to less flying by getting allowance for the fixed minimum flying hours. Some have been sitting at home for as long as a year and are looking for options. How do you plan to allay their concerns?
Ans) You are right that there are a number of pilots that are not flying (line released) yet and we are in the process of changing that. Training is yet to start for only 21 of our under 800 pilots. Everybody else is part of the training mix order. These 21 joined much more recently. We are a very fast growing airline. What I would say to them is be a little more patient. When people look back on us 10 years from now, they would have enjoyed a very fulfilling career at one of India's best airlines and that they would be senior pilots in a highly employee centric organisation.
Q) Akasa was to shift to Terminal 1 in Delhi. Do you think IGIA T1 should have both domestic and international flights for the sake of both passengers and airlines?
Ans) We had this unfortunate incident at T1 (when a part of it collapsed). We were all set along with many other airlines to move to T1 that comes with more slots, aircraft parking stands and an increased footprint for us and others in Delhi. Unfortunately, there has taken a bit of a setback. We’re in very close touch with Delhi Airport management. As far as having both domestic and international operations from the same terminal goes, that is a better option not just in Delhi but everywhere. As an airline; as customers, we’d be better off if that way.
Q) What is your current network like and what growth potential do you see for Indian aviation?
Ans) As of now, we fly to 22 domestic and four international destinations (Abu Dhabi, Doha, Riyadh and Jeddah. Kuwait flight start on Aug 24). Our international load factors are 75% plus. Given the way our GDP is growing, demand will far outstrip capacity for a very long time. India has some of the world’s lowest fares and we are very reasonably priced. Due to supply chain issues we had got 13 MAX with some front rows in 2x2 and remaining in 3x3. By this October all but two of our planes will be in a single (all 3x3) configuration.
Q) Akasa has been talking to investors. What is your funding status?
Ans) We are very well financed, well funded. To give you a data point, we started with a certain amount of capital and today we have more than that initial amount of capital in our bank account.
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