To say that the Indian aviation market is undergoing a transformative churn is an understatement. Every player in the sector is undergoing a metamorphosis.

While Air India is running a little behind schedule in its proposed phase of taking a leadership position (expected between April, 2024 and March, 2027), IndiGo is shedding its original skin to emerge as a full-service international player on a global stage. Air India’s low fare wing (the merged entity that has emerged from Air India Express and AirAsia India) is rejigging and transforming itself into a full- blown Indigo in its original avatar while SpiceJet is struggling to stay afloat in a market full of uncertainties.

It is therefore of some consolation to the sector that at least one player is an outlier: Akasa, the airline that surprised most by the timing of its launch in August 2022 - when the rest of the players were yet to emerge from the shadows of the 2020 global pandemic. It was in the midst of the 2020 pandemic and armed with many learnings after his two stints with Indian carriers - Jet Airways and Go First, Vinay Dube, the CEO of Akasa Airlines, began to write a business case of what would become Akasa in the future. The airline’s official founding day was in November 2020, smack in the middle of one of the biggest crisis faced by airlines globally.

At the time of writing this piece, the airline was awaiting final clearances to accept fresh funding and new board members. The amount or the names of investors have not been disclosed yet. Reports say the investment could be around US $100 million from a few new and long-term investors, of which a ₹300 crore investment is expected from Premji Invest, Claypond Capital (Ranjan Pai’s family office) and 360 ONE Asset.

Further funds infusion will come in through a doubling of the initial investment made by the original owners Jhunjhuwalas through the family trust while keeping their holding below 51%.

The good, the weak and the uncertain: Here’s a look at Akasa’s opportunities and challenges.

The Good: On Firmer Ground

Akasa took flight in an industry that had witnessed a spate of bad news including the grounding of Jet Airways in 2019, amid a battering of the entire industry because of the pandemic. As a result, the Rakesh Jhunjhunwala-funded Akasa Air grabbed attention even before it took flight amid questions about its progress and future.

If the founders hold a rear-view mirror before them, they would be justified to wonder whether this is the same market they entered. From the time of inception of the airline to now, a lot has changed both on the ground and in the air. One of its primary funders with deep pockets, the late Rakesh Jhunjhunwala passed and was no longer available to support it; one of its direct rivals Go First declared bankruptcy and ceased operations while another rival SpiceJet curtailed them. A third rival AirAsia India has since merged with Air India Express.

Besides these, the Indian market has shed the gloom cast by the pandemic and........

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