Rakesh Jhunjhunwala To Invest In An Indian Airline For $35 M
- ByAyushi Ray | July 29, 2021
Investor and billionaire Rakesh Jhunjhunwala to invest in an Indian airline for $35 M, and it will be an ultra – low cost airline : Akasa Air. Jhunjhunwala told Bloomberg on Wednesday. “I’m very, very bullish on India’s aviation sector in terms of demand,” he said. Akasa Air is expected to get a no-objection certificate from the aviation ministry within the next 15 days and will include a fleet of planes that can carry around 180 passengers. An executive from Delta airways is expected to join this aviation company, Jhunjunwala said. “For the culture of a company to be frugal you’ve to start off fresh,” he said during Wednesday’s interview. Jhunjhunwala wants to enter into an industry that has suffered significant losses due to the second wave of Covid-19. Even before the pandemic, domestic airlines like Kingfisher and Jet Airways were struggling and ultimately had to quit.
Infact, InterGlobe Aviation, which is the mother company of the india’s largest airline at the moment,IndiGo, reported a net loss of ₹3,174 crore on Tuesday, for the first quarter of FY21, primarily due to a sharp decline in revenues amid the second wave of the coronavirus pandemic. The airline, with a fleet of 277 planes at the end of June 2021, incurred a net loss of ₹2,844 crore in the year-ago period. However, such details are not stopping Jhunjhunwala from making an investment in the aviation industry, and of course he is well versed in the realities of going this business. “I think some of the incremental players may not recover,” he said, but expressed confidence in his partners and said, “I’ve got some of the best airline people in the world as my partners.”
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