Rakesh Jhunjhunwala-backed Akasa Air gets NOC from Aviation Ministry; flights to begin by 2022

Akasa Air, the airline venture promoted by billionaire investor Rakesh Jhunjhunwala, has received the no-objection certificate from the Ministry of Civil Aviation, the holding company SNV Aviation Private Limited said on Monday.

The airline has received the NOC to work with the regulator on all additional compliances. “We are extremely happy and grateful to the Ministry of Civil Aviation for their support and for the grant of the NOC," Vinay Dube, who is now the CEO of Akasa Air, was quoted as saying in the statement cited by news agency PTI.

"We will continue to work with the regulatory authorities on all additional compliances required to successfully launch Akasa Air," he added.

SNV Aviation Private Limited will fly under the brand name Akasa Air, the airline said, adding that operations are expected to begin in the summer of 2022.

Jhunjhunwala-backed Akasa Air also has former IndiGo president Aditya Ghosh on its board. The airline plans to operate approximately 70 planes in the next four years.

Sources had earlier in August told CNBC-TV18 that Akasa Air is expected to be based out of Bengaluru and it plans to have a route network close to the city such as Bengaluru-Mumbai, Bengaluru-Chennai, Bengaluru-Hyderabad among others.

They had also said that the low-cost airline is likely to opt for a Boeing fleet of narrow-body aircraft and it may even get some MAX aircraft on lease.

“Lower lease rentals due to COVID-19 and a weaker salary structure are likely to lead to lower expenses and thereby, work in favour of a new airline such as Akasa Air. However, the uncertain demand environment due to the COVID-19 pandemic could be a risk factor,” a source had said on August 4.