Rakesh Jhunjhunawala’s airline Akasa orders 72 Boeing 737 Max at Dubai Air Show – Times of India

NEW DELHI: Billionaire investor Rakesh Jhunjhunwala-promoted upcoming airline Akasa on Tuesday placed an order for 72 Boeing 737 Max at the Dubai air show.
The deliveries will begin next year, in line with the low cost carrier’s plans to start flying by the summer of 2022.
This is the first order for Max by an Indian airline after the two crashes in Indonesia and Ethiopia in 2019; their global ungrounding and subsequent return to service from late last year after carrying out required modifications to ensure safety.
Akasa Air CEO Vinay Dube said: “(I) believe the new 737 Max will support our aim of running a cost-efficient, reliable, affordable and environmentally friendly airline with the youngest fleet in the Indian skies. India is one of the fastest-growing aviation markets in the world… see decades of growth ahead of us. (Aim to) democratise air travel by creating an inclusive environment for all Indians regardless of their socio-economic or cultural backgrounds.”
While Dube is former Jet CEO, Akasa co-founder Aditya Ghosh was among those at the upcoming airline’s first order signing. The airline has got no objection certificate from the government and will seek an airline licence from the DGCA.
Valued at about $9 billion at list price, this order for two versions of the Max (737-8 and high-capacity 737-8-200) is a boost for Boeing in India where the single aisle market is dominated by rival Airbus.
Indian carriers currently have 540 single aisles, of which 451 — 83% — are Airbus A320 family and 89 Boeing 737s.
Airbus has over 700 A320 family planes to be delivered over the next 7-8 years, with a lion’s share going to IndiGo — the world’s biggest customer of A320 neo (new engine option) family of planes. There is a long waiting period for a new customer ordering this aircraft.
Boeing, which currently dominates the wide body space in India, has narrow body customers like AI Express (going to the Tatas soon), SpiceJet and a few others using erstwhile Jet Airways’ B737s.
SpiceJet (13) and Jet (5) together had 18 B737 Max when they were globally grounded in March 2019 globally following two crashes, one each of Indonesia’s Lion Air and Ethiopian Airlines, within five months in which 346 people died.
While since late last year B737 Max have resumed flying after making the required hardware and software changes and India has also allowed this plane to take to the skies, none of SpiceJet’s 13 Max are doing so at present.
Boeing Commercial Airplanes president and CEO Stan Deal said: “We are honoured that Akasa Air, an innovative airline focused on customer experience and environmental sustainability, has placed its trust in the 737 family to drive affordable passenger service in one of the world’s fastest-growing aviation regions. The 737 MAX, with its optimised performance, flexibility and capability, is the perfect airplane to establish Akasa Air in the Indian market and ensure it effectively grows its network.”
Boeing claims the B737 MAX family “delivers superior efficiency, flexibility and reliability while reducing fuel use and carbon emissions by at least 14% compared to airplanes” it replaces.
“India’s growing economy and expanding middle class will fuel strong demand for commercial flights, driving the need for more than 2,200 new airplanes in South Asia valued at nearly $320 billion over the next 20 years,” Boeing says citing its 2021 Commercial Market Outlook forecast.