Jhunjhunwala Family To Sidestep Akasa Air's $1B Fundraise: Report

Akasa Air, India’s latest entrant in the aviation sector, is gearing up to raise a whopping $1 billion (₹8,384 crore) in the next three years.

What Happened: The low-cost airline is raising funds to support its ambitious expansion plans as it looks to receive nearly 50 new aircraft in the next two to three years, thereby expanding its domestic and international network, according to Moneycontrol. 

Interestingly, co-founder Rekha Jhunjhunwala, wife of the late billionaire investor Rakesh Jhunjhunwala, is unlikely to participate in the upcoming equity rounds.

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The Jhunjhunwala family, along with Akasa’s Co-Founder and Chief Executive, Vinay Dube, collectively own over 65% of the airline, with the Jhunjhunwala family being the largest shareholder with a 40% stake. The family is reportedly waiting for the airline to break even before considering further fund infusion.

Akasa Air had initially planned to have a fleet of 28 aircraft by March 2024 but had taken delivery of only 24. Its ambitious expansion plans have been disrupted due to supply chain issues, challenges at aircraft manufacturer Boeing and increased competition for aircraft deliveries. 

The airline now expects Boeing 737 MAX 10 deliveries by 2027. The airline had ordered 150 737 MAX narrow-body planes in January 2024, including the MAX 10 and MAX 8-200 versions. 

The airline is working towards increasing its fleet size to about 74 aircraft by the end of 2027, aiming to fly around 20 million domestic passengers annually by the end of 2027, capturing 12%-15% of the domestic market, while also catering to nearly 1.5 million international passengers annually.

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