What’s poppin’— ET reports that a new low-cost nationwide airline is in the making, kicked off by a bunch of ex-aviation sector executives, backed by dollars from billionaire investor Rakesh Jhunjunwala.
Details remain scant, but Jhunjunwala plans on owning about 40% of the business, with a ~$35 million seed capital infused to get the party started. The airliner is called “Akasa”.
Capitalizing on big waves — the list of aviation ventures with the “low-cost” value-proposition, previously burnt to the ground, runs long. But two key factors make this time unique:
- Post COVID revenge travel — longer it takes for India to beat all waves, longer and brighter the revenge travel season will look
- Broad expansion of India’s middle class — whose penchant for travel and “quasi luxury” experiences should not be underestimated
Big picture — with Jet Airways scheduled to take off soon, the last thing India’s heavily regulated, discounted, and cut throat competitive commercial aviation sector needs is more competition. Tough game, but exciting to watch unfold.