According to reports, former Jet Airways CEO Vinay Dube would be a member of Rakesh Jhunjhunwala’s new airline business- Akasa Airlines.
India’s billionaire investor Rakesh Jhunjhunwala is planning to create an inexpensive airline with a fleet of 70 planes. According to Bloomberg, the new airline, Akasa Air, would be purchasing its fleet of aircraft over the following four years.
Jhunjhunwala’s foray into aviation comes at a time when the COVID-19 epidemic is causing financial instability for international and domestic carriers.
Jhunjhunwala would spend $35 million in the new venture and own a 40% share in the company. The stock market maestro has applied for a no-objection certificate from the Aviation Ministry (NoC).
Aditya Ghosh, Ex-Indigo President, will be a co-founder of India’s newest airline, Akasa, according to media reports. He would own less than 10% of Akasa and will not be involved in management, but will serve on the board as Jhunjhunwala’s nominee; meanwhile, the market ace will control 40% of the company and Dube will have 15%, plus a position as CEO.
Airbnb and Par Capital Management, which owns US ULCC Sun Country Airlines, are among Akasa’s investors.
Ghosh presently serves on the boards of Fab India and Oyo Rooms. He spent ten years at Indigo, growing it from a new entrant to India’s largest airline with a fleet of 160 planes and a market share of Rs 55,000 crore, according to the news sources.
Former Jet Airways senior VP Praveen Iyer will serve as COO, while former GoAir revenue management VP Anand Srinivasan will serve as CTO, and former Jet flight operations VP Floyd Gracious is expected to serve in a similar capacity. The Head of corporate affairs is expected to be Neelu Khatri, an industry veteran.