Billionaire Rakesh Jhunjhunwala to launch ultra-low-cost airline Akasa Air with 70 planes

In a bold move, billionaire investor Rakesh Jhunjhunwala is planning to launch his own airline with 70 aircraft in the next four years, according to Bloomberg. Jhunjhunwala, who plans to invest a whopping $35 million and would own 40% of the carrier, said he is expecting a no-objection certificate from the Aviation Ministry in the next 15 days.

The billionaire is looking to launch an ultra-low-cost airline named 'Akasa Air' with a former senior executive of Delta Air Lines Inc. on his team. The owners are looking for aircraft that can carry 180 passengers.

The multi-million dollar investment comes at a time when the aviation market has seen some airlines collapse in the face of intense fare wars and high costs due to the ongoing COVID-19 pandemic. Jhunjhunwala, also known as India's Warren Buffett, is still looking at opportunities to woo flyers with a brand-new carrier offering low fares.

"For the culture of a company to be frugal you've to start off fresh," Jhunjhunwala said. "I'm very, very bullish on India's aviation sector in terms of demand."

COVID-19 lockdown hits Aviation Industry

While demand for air travel has been hit globally, India's aviation industry is at greater risk of delayed recovery, due to the looming risk of the third COVID-19 wave. Airlines are feeling its impact. Even before the pandemic hit India, popular airlines such as Kingfisher Ltd and Jet Airways Ltd struggled with losses and were forced to close operations in the country.

Vistara, which is owned by Singapore Airlines Ltd, is in discussions with Boeing Co. and Airbus SE to delay aircraft deliveries and make changes to the payment timetables. IndiGo, India's largest airline, also reported a heavy loss as COVID-19 lockdown crimped its revenue.

However, Rakesh Jhunjhunwala, whose estimated net worth of about $4.6 billion, remains undeterred, said, "I think some of the increment players may not recover. But I've got some of the best airline people in the world as my partners."