Akasa Airlines Might Purchase New Aircraft from Airbus

There is a big chance that a new deal between Airbus and Akasa might be finalised. It will be interesting to see the strategy that Akasa adopts in a price sensitive market such as India.

Highlights

  • Akasa, a Rakesh Jhunjhunwala backed airline is reported to having conversations with the aircraft manufacturing giant Airbus.
  • There is a big chance that a new deal between Airbus and Akasa might be finalised.
  • It will be hard for the airline to compete with IndiGo right away.

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Akasa Airline

Akasa, a Rakesh Jhunjhunwala backed airline, is reported to having conversations with the aircraft manufacturing giant Airbus. The talks could be for Akasa procuring new aircraft from Airbus. It is worth noting that Akasa has also been in talks with Boeing for manufacturing aircraft. According to a PTI report, the upcoming Indian airline wants to procure the Boeing 737 Max aircraft. The direct competitor of the Boeing 737 series in the market is Airbus A320.

"We are not in the business of countering offers, but we are having conversations with Akasa. Of course, we do," Akasa's Chief Commercial Officer Christian Scherer replied when asked by PTI if he plans to counter the offer put by Boeing to Akasa.

No Details of Negotiations Available from Akasa

When asked if he could tell what stage the negotiations are with Akasa, Scherer replied: "That is really private. What I can tell you is that when you start an airline in India, what is the benchmark you are looking at. It is pretty obvious, isn't it? It is IndiGo and to some extent Go First and SpiceJet, but the big guy is IndiGo."

On the question of increasing the number of training centres in India, Scherer said: "We have a training centre on the outskirts of Delhi...Of course, as the fleet grows, there is going to be a significant opportunity to grow training centres for ourselves or in association with our partners and our customers."

"That is an activity and a business that is going to grow, and it should grow in India. Airbus is a big presence in India," he added.

There is a big chance that a new deal between Airbus and Akasa might be finalised. It will be interesting to see the strategy that Akasa adopts in a price-sensitive market such as India. Especially, it will be hard for the airline to compete with IndiGo right away, so its strategy will be very important.

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Tanay hails from Bilaspur, Chattisgarh and is a sports and fitness enthusiast. Reading and writing is something which comes to him out of love for the web of magic that words can create.

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