Rakesh Jhunjhunwala-backed Akasa Air hasplaced an order for 72 Boeing 737 MAX jets, valued at nearly $9 billion at listprices, the US plane maker has said. Typically, airlines secure big discountsfrom the original equipment manufacturers while placing orders.
The order by billionaire investor RakeshJhunjhunwala-backed airline comes months after air safety regulator allowed thecountry's airlines to fly the MAX jet, ending its nearly two and a half yearsof regulatory grounding after two fatal crashes in five months killed 346people.
"We are honoured that Akasa Air... hasplaced its trust in the 737 family to drive affordable passenger service in oneof the world's fastest-growing aviation regions," Stan Deal, president andchief executive officer (CEO) of Boeing Commercial Airplanes, said in astatement.
"India is one of the fastest-growingaviation markets in the world with unparalleled potential. Akasa Air's corepurpose is to help power India's growth engine and democratise air travel bycreating an inclusive environment for all Indians regardless of theirsocio-economic or cultural backgrounds,” airline’s Chief Executive Officer (CEO) VinayDube said.
The low-cost airline receivedinitial clearance from the civil aviation ministry to start operations inOctober and is expected to begin flying next year.
Read About Akasa Airlines:
The airline is being launched by stock marketinvestor Rakesh Jhunjhunwala, who will hold a 40 per cent stake in the company.Jhunjhunwala has onboarded aviation industry veterans such as former JetAirways CEO Vinay Dube and ex-IndiGo President Aditya Ghosh to run the airline.While Dube is the CEO of the company, Ghosh is expected to be on the board asJhunjhunwala’s nominee. The Mumbai-based investor will pump in $35 million.