InvestorQ : Can you tell me about the latest airline venture of Rakesh Jhunjhunwala in the Indian aviation market?
Chandralekha Desai made post

Can you tell me about the latest airline venture of Rakesh Jhunjhunwala in the Indian aviation market?

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NISHA Nayak answered.
4 months ago
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One of India’s foremost equity investors, Rakesh Jhunjhunwala, has zeroed in on the name Akasa Air for his airline venture. Rakesh will be investing $35 million into this airline venture and start with a fleet of 70 planes, with each plane having a load of 180 passengers. Rakesh has conceived this airline as an ultra-low-cost airline which will focus on capacity flying, not frills and quick churn and turnaround time. Project is await Civil Aviation Ministry approval.

Rakesh Jhunjhunwala has already picked former Indigo Airlines CEO, Aditya Ghosh, to drive the business. Apparently, Mr. Jhunjhunwala sees huge potential in the as a real mass market business, like it is in other countries like the US and China. It looks like the bet he is making is that the explosion in aviation demand would offset challenges like fuel costs, regulatory pressures, price competition, global crude price uncertainty, risk of new airlines etc.

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