Richard Branson, the CEO of Virgin Group, famously said that “If you want to be a millionaire, start with a billion dollars and launch an airline.”
Unfortunately, the Indian aviation sector has been a testament to that after witnessing major airlines going bankrupt in the previous decades. Billionaire ace-investor Rakesh Jhunjhunwala is considering investing $35 million with 40% equity in the upcoming airline venture and plans to have 70 aircraft over the next four years.
The ultra-low-cost airline would be called Akasa Air, and the team, reportedly including former ex-senior officials from various leading airlines, are planning the appropriate inventory.
Jhunjhunwala indicated his plans regarding approvals from the Aviation Authorities of India, saying that he plans to be ‘bullish’ and expects to receive a no-objection certificate from the aviation ministry in the next 15 days.
“I’m very, very bullish on India’s aviation sector in terms of demand,” said Jhunjhunwala in an interview with Bloomberg.
With IndiGo Airlines reporting a record-breaking loss and Vistara Airlines deferring their aircraft orders, establishing an airline in such a volatile environment has been termed as risky.