Akasa Air, one of the latest players in the Indian domestic aviation sector, has adjusted its IPO and stock listing plans, pushing them beyond the previously anticipated date of 2027. According to the airline’s CEO, Vinay Dubey, a listing by the end of this decade is a “much more realistic goal.”
Dubey explained his perspective, stating, “I don’t think 2027 will be possible for a listing, but the listing is something that we definitely want to do. We may have to gather a little more history before we can list. Certainly, listing or an IPO is something that we would desire.”
At present, only two Indian airlines, IndiGo and SpiceJet, are listed on the country’s stock exchanges. The plans of GoAir, another domestic carrier, to launch an IPO were canceled, and the airline has encountered financial difficulties that have disrupted its operations since May of this year.
Akasa Air, which commenced operations in mid-2022, currently offers over 750 flights each week across 16 routes, connecting major cities such as Mumbai, Delhi, Bengaluru, and Ahmedabad.
The airline is actively preparing to launch international services by the end of the fiscal year 2024 and is poised to expand its aircraft fleet accordingly. Currently, Akasa operates a fleet of 20 aircraft, with plans to place a significant aircraft order by the end of 2023.
In preparation for its overseas operations, Akasa Air has secured international flying rights from key Middle East aviation markets, including Saudi Arabia, Qatar, and Kuwait.
CEO Dubey commented on the airline’s growth strategy, saying, “We are in growth mode. We should have two more aircraft delivered before the end of this calendar year. We will exit the financial year with 25 aircraft. We will exit the following financial year with approximately 40 aircraft.”
Dubey also dismissed reports suggesting that the family of the late ace investor Rakesh Jhunjhunwala is considering selling its stake in Akasa Air, calling such rumors “absurd.” He emphasized that the Jhunjhunwala family is committed to a long-term investment in the airline.
As per the most recent official data, Akasa Air holds a domestic market share of 4.2% and served 5.17 lakh passengers in the previous month. The airline’s strategic approach indicates a strong focus on expansion and continued growth in the Indian aviation sector.
