Akasa Air started in 2021, when the world was still reeling from Covid-19. It is now a 30-plane airline controlling 5% of the domestic market. It has, however, traversed this journey with some hiccups. In a media roundtable, Akasas CFO Ankur Goel talked about…
Why it matters
- Akasa Air has emerged as a notable player in India's aviation sector, growing its market share since its inception.
- The airline's strategy involves prioritizing pilot availability over aircraft idling, reflecting its commitment to operational efficiency.
- CFO Ankur Goel's insights highlight the challenges faced by new entrants in the aviation industry, especially in a post-pandemic landscape.
Launched in 2021 during a tumultuous period for global aviation, Akasa Air has rapidly established itself in the Indian domestic market, currently commanding a 5% share with a fleet of 30 aircraft. Despite facing numerous challenges along the way, Akasa's journey reflects a determination to carve out a niche in a highly competitive sector.
In a recent media roundtable, Akasa's Chief Financial Officer, Ankur Goel, provided an in-depth look at the airline's progress and the hurdles it has encountered since taking to the skies. The COVID-19 pandemic posed significant obstacles for the airline industry, and Akasa was not immune to these setbacks. However, the company has strategically navigated these difficulties, positioning itself as a viable option for travelers in the domestic market.
Goel emphasized the importance of maintaining a balance between operational capacity and financial stability. He stated, “We prefer to have idle pilots rather than grounded planes.” This approach underscores the airline's commitment to ensuring that its pilots are ready for service while managing the costs associated with aircraft maintenance and operation. By prioritizing pilot availability, Akasa aims to enhance its operational flexibility and responsiveness to market demand.
The CFO also discussed the financial landscape of the airline, highlighting the ongoing challenges related to funding and profitability. Like many new entrants in the aviation sector, Akasa has faced difficulties in securing the necessary investments to support its growth. However, Goel remains optimistic about the airline's future, citing a strong commitment from stakeholders and a clear vision for expansion.
As Akasa Air continues to expand its fleet and services, it faces the ongoing challenge of differentiating itself in a crowded marketplace. The airline has adopted a customer-centric approach, focusing on delivering value through competitive pricing and quality service. This strategy is particularly crucial as travelers become more discerning in their choices, especially in a post-pandemic environment where health and safety remain paramount.
In addition to its operational strategies, Akasa is navigating the complexities of working with aircraft manufacturers. Goel addressed the partnership with Boeing, acknowledging the importance of collaboration in ensuring the timely delivery of aircraft and support services. The airline's relationship with Boeing is vital, as it aims to build a robust fleet that can meet the demands of an evolving market.
As Akasa Air looks to the future, the airline's commitment to sustainable growth remains a key focus. The company is keenly aware of the environmental impact of aviation and is exploring ways to minimize its carbon footprint while meeting customer expectations. This forward-thinking approach is essential as the industry shifts towards more sustainable practices.
In conclusion, Akasa Air's journey since its launch reflects both the challenges and opportunities present in the aviation industry. With a clear strategy focused on operational excellence and customer satisfaction, the airline is poised to continue its growth trajectory in the coming years. As it navigates the complexities of funding, partnerships, and market competition, Akasa's ability to adapt and innovate will be critical to its long-term success. The insights shared by CFO Ankur Goel shed light on the realities faced by new airlines and their strategies to make their mark in a dynamic industry.
