Akasa CEO says airline in strong position in terms of cash and will grow more in FY25

Akasa Air, one of India's latest commercial airlines, is all set to commence its international operations on March 28. Akasa will debut on the international route by starting direct flights to Doha in Qatar from Mumbai.

Speaking exclusively to CNBC-TV18, founder and CEO Vinay Dube said Akasa has "broken all records" by launching international operations within 19 months of starting operations.

"Akasa is the most customer-centric airline in the country. We are the most punctual airline as per Directorate General of Civil Aviation (DGCA) data. As long as we continue to be customer-centric, there will be no problem in creating a name for us even in a crowded market," Dube said.

Akasa has also won bilateral rights to start operations to Kuwait and Saudi Arabia. However, the airline has yet to announce when flights on these routes will begin. The CEO said it takes "many months" to get certain regulatory approvals from other international regulatory bodies but the airline is hoping to get international permissions for starting operations to Riyadh and Jeddah soon. "Expecting to launch ops to Riyadh and Jeddah in the latter half of summers," Dube said.

Though the airline is att set for its international flight, the CEO said Akasa has not yet set any targets for generating revenue. "We have a lot of ambition for international operations. We have capable aircraft in the fleet that can fly to East Africa, Hong Kong, Indonesia, parts of China, and various CIS countries," Dube said. The CIS or Commonwealth of Independent States consists of Belarus, Kazakhstan, Kyrgyzstan, Russian Federation, and Tajikistan.

Showing confidence, Dube said international travel in India is expected to grow much faster than domestic travel. "We will add many international destinations in the upcoming financial year."

The airline is not exploring codeshare agreements at the moment and believes India can generate international traffic on its own.

When asked about the pilot shortage and new FDTL (Flight Duty Time Limitation) norms, Dube reiterated a point made earlier to CNBC-TV18 that the airline has no shortage of pilots. "We have over 700 pilots. We are extremely pleased with the way we've been able to attract and retain pilots. Akasa is ahead of every regulatory requirement. We'll find a way to work out with the new FDTL norms."

On the financial front, Dube said, "We can't give guidance on revenue; being a Private Limited company, that's one of the advantages you get. However, Akasa is in an extremely strong position from a cash perspective. Akasa has built a rock-solid foundation on the business model and cash. We expect to end FY24 on a growth trajectory that no one in the history of global aviation has ever seen. We will also end FY24 as India's most on-time airline."

In January, Akasa Air became the first airline to place a triple-digit order of aircraft on Indian soil at the WINGS India 2024. Akasa placed an order for 150 MAX aircraft with Boeing.

"Delivery from Boeing in FY25 to meet our expectations and will allow us to grow as per plan. Expecting a lot of growth, and more international flights in FY25. Will further elevate the passenger experience with more amenities. All new Akasa aircraft will come with USB Type-C charging ports."

Dube did not reveal specific plans for future domestic destinations. However, he said that the airline is planning to expand to more domestic routes and will also add more frequencies to existing cities.

On the concerns around manufacturing practices at Boeing, Dube said: "As airlines improve and increase focus on safety every day, we expect Boeing or Airbus or any other manufacturer to continue to redouble their efforts on safety. The incidents that we have seen with Boeing are on aircraft that are not in Akasa's fleet. Aircraft selected by Akasa are very standard and not modified. We hope that Boeing and FAA will continue to raise the safety bar which will be a good thing for everyone."