Rakesh Jhunjhunwala Akasa Air gets government nod, to start flights in summer of 2022

India: India’s Veteran Billionaire investor Rakesh Jhunjhunwala's plans to start his aviation services from the summer of 2022, has got a green signal from the government of India. Akasa Air has got the green signal from the government for this. The Ministry of Civil Aviation of India has given No Objection Certificate (NOC) to SNV Aviation Private Limited, which is entering the Indian aviation sector under the brand name Akasa Air.

Rakesh Jhunjhunwala's stake in Akasa Air could be 40 per cent and the investment by him could be Rs 247.50 crore. So far, the only information that has come to the fore about Akasa Air is that it can be a low-cost carrier, that is, passengers can get the facility of air travel very cheaply. Apart from this, no more details have been revealed. Recently, during a conclave, when Jhunjhunwala was asked about his entry into the aviation sector, he refused to divulge anything, citing legal contracts.

The aviation industry is reeling from the impact of the COVID-19 pandemic and it is great news, as this industry has long prospects.

Vinay Dubey, CEO, Akasa Air says that Akasa Air wants to launch the nation's most dependable, affordable and greenest airline for Indians. Akasa Air will serve all Indians irrespective of the socio-economic or cultural background of any Indian. Vinay Dubey, CEO of Akasa Air, is a former CEO of Jet Airways.

What is meant by a low-cost carrier?

A low-cost carrier is a 'No Frills Airlines'. That is an airline in which only essential facilities is provided to the passengers, due to which the journey is cheap. To make air travel affordable for passengers, non-essential amenities such as in-flight entertainment, in-flight meals and business class seating are spared. 

Air Deccan also made a similar effort

Even before this, there was a person in the country who had turned the dream of cheap air travel into reality. This feat was done by GR Gopinath, a retired captain and businessman of the Indian Army. GR Gopinath became a businessman after retirement from the army; Captain GR Gopinath started Air Deccan in the year 2003. It was India's first low-cost airline, popularly known as a common man's airline. Air Deccan's air ticket prices were almost half that of rivals. In 2007, Captain Gopinath sold Air Deccan to Kingfisher, the company of liquor baron Vijay Mallya. Mallya renamed Air Deccan as Kingfisher Red. Later this airline closed down in 2011.

Vinay Dubey is a great expert in the aviation sector

Dubey has held senior positions at GoAir, Jet Airways, Delta and American Airlines in a career spanning over 30 years. He has prepared the technical blueprint with a team of trusted collaborators, which includes Jet-I to name a few. Jet Airways ceased operations in the year 2019, but now it is also going to fly again. Now it remains to be seen whether Akasa reaches the skies before Jet-II.

Investment in Akasa Air has started coming

It is reported that Rakesh Jhunjhunwala has invested Rs 43.75 crore in Akasa Air as the first instalment. This investment has been made in the name of Rekha Rakesh Jhunjhunwala. Rakesh Jhunjhunwala had announced a total investment of Rs 247.5 crore in Akasa Air. Apart from this, Madhav Bhatkuli, a Dubai-based investor and founder of the New Horizon Investment Fund, has invested Rs 6.24 crore for a 17 per cent stake in Akasa Air.  

Rakesh Jhunjhunwala also recently met Prime Minister Narendra Modi.

About The Author

Ashwin Roy is an Indian fact-checker and news writer, writing news for Ayupp since 2014.

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