At the ongoing Dubai Air Show, Akasa Air, India's newest airline backed by the Big Bull Rakesh Jhunjhunwala placed a massive order of 72 Boeing 737 Max family of aircraft, one of the largest orders for the Max plane globally and also the largest order post the 737 Max grounding. Slated to start operations next year, the airline has received the initial clearance (NOC) from the civil aviation ministry and DGCA to launch the ultra-low-cost carrier. Akasa air share price india We decode what exactly is Akasa Air and what news does it bring to the table?
According to the statement by Boeing, Akasa Air has ordered two models from the 737 MAX family, the 737-8 and the high-capacity 737-8-200. The Mumbai-based carrier will begin taking delivery of the planes starting mid-2022, according to the statement. Akasa air share price india The order by Akasa Air comes months after the Directorate General of Civil Aviation (DGCA) allowed airlines to fly the MAX jet, ending its nearly two and a half years of regulatory grounding after two fatal crashes in five months killed 346 people.
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DGCA grounded all 737 Max planes in India on March 13, 2019, three days after the crash of an Ethiopian Airlines 737 Max plane near Addis Ababa, which had left 157 people, including four Indians, dead. Akasa air share price india
Akasa Air is backed by ace investor Rakesh Jhunjhunwala, who is the co-founder of the newest airline and owns 40% of the company, along with Aditya Ghosh, former President of Indigo who will have a 10 per cent stake in the Akasa Air. Ex-Jet Airways CEO Vinay Dube will be the CEO of Akasa Air with a 15 per cent stake. Akasa air share price india The brand is also looking to hire other industry leaders at the top spot before beginning the operations. 
Akasa Air plans to offer flights across India with an "endeavour to be the nation's most dependable, affordable and greenest airline". While no announcement has been made in this regard, it is expected that Akasa will serve the major domestic routes with the ultra-low-cost airline to attract potential flyers.
Details Of The Deal You Need To Know
- The order, placed at the Dubai Airshow 2021, values around USD 9 billion at the list price of the aeroplanes.
- According to the report by IANS, this order includes two variants from the 737 Max family, the 737-8 and the high-capacity 737-8-200.
- As per Boeing Commercial Airplanes, as reported by IANS, the 737 MAX family delivers superior efficiency, flexibility and reliability while reducing fuel use and carbon emissions by at least 14 per cent compared to the aeroplanes it replaces.
- The carrier plans to offer commercial flights starting in the summer of 2022 and use its new fleet of 737s to meet the growing demand across India.
- India’s growing economy and expanding middle class will fuel strong demand for commercial flights, driving the need for more than 2,200 new aeroplanes in South Asia valued at nearly USD 320 billion over the next 20 years, according to Boeing’s 2021 Commercial Market Outlook.