25.10.2023 - 05:58 UTC
Akasa Air (QP, Mumbai International) does not expect to conduct an initial public offering (IPO) before 2027, with the carrier’s chief executive Vinay Dube telling the Press Trust of India news agency on October 22 that a listing on stock exchanges by the end of the decade is “a much more realistic goal”.
“I don’t think 2027 will be possible for a listing, but a listing is something we definitely want to do,” he said. “We may have to gather a little more history before we can list. Certainly, a listing or an IPO is something that we would desire.”
Earlier this year, Dube told ch-aviation in an interview that the airline was not looking at financing measures such as a share issue or bank loans, while an IPO will eventually take place “for sure, but that’s a long ways away, we have to create a track record first.”
Currently, just two scheduled carriers in India are listed, IndiGo Airlines (6E, Delhi International) and SpiceJet (SG, Delhi International). Earlier...
17.10.2023 - 00:35 UTC
SpiceJet (SG, Delhi International) is midway through a program to lease ten B737s and an A340, with three of the narrowbody jets and the A340 already delivered, according to a CNBC-TV18 report.
Analysis of ch-aviation fleets advanced data lends some support to the report, with A340-300 YR-LRD (msn 835) ferrying to India in June and now operating on domestic and international sectors, including recent repatriation flights out of Tel Aviv Ben Gurion. The widebody's operator is Legend Airlines (Romania) (LZ, Bucharest Henri Coanda).
"Diwali [...], the Cricket World Cup, school vacations and office breaks will contribute to the increased demand," an anonymous SpiceJet source told the outlet. "To accommodate this surge in traffic, we have commenced the induction of ten leased aircraft B737s starting September 2023."
SpiceJet is also wet-leasing two B737-800s - from Corendon Airlines (XC, Antalya) and Corendon Airlines Europe (XR, Malta International).
The low-cost carrier has been plagued by operational and financial difficulties this year. However, in May, its chairman...
01.10.2023 - 22:51 UTC
Bombay High Court has given Akasa Air (QP, Mumbai International) the green light to seek damages from six pilots who allegedly breached their employment contracts when they exited the airline. The court approved the carrier's application on September 27.
The pilots (first officers) left the airline without serving a mandatory six-month notice period. They were among many who have reportedly departed Akasa in recent months, leaving the airline severely short of flight crews and resulting in significant flight cancellations and reliability issues. Consequently, across July and August, Akasa paid customers INR10 million rupees (USD121,000) in compensation.
Akasa is seeking INR210 million (USD2.53 million) from the six pilots for damages to the airline’s reputation, plus a further INR180,000 (USD2,170) for breaking their employment contracts, according to India's Economic Times. Earlier this month, ch-aviation reported that Akasa intended to take legal action against 43 pilots who allegedly breached their employment contracts when they left the airline.
These pilots, who now work for other airlines, had attempted to have the lawsuit dismissed, with their legal representatives arguing...
27.09.2023 - 03:24 UTC
Akasa Air (QP, Mumbai International) is looking to raise up to USD400 million, in the process watering down the stake of its major existing shareholders, according to India's Mint outlet.
An unidentified source close to proceedings told the outlet that "the fundraising will be done in multiple tranches, with an increasing valuation of up to USD1 billion from around USD650 million now. The Jhunjhunwala family is unlikely to buy any additional shares in the planned fresh equity issuances, which may dilute their holding."
That family, whose now deceased patriarch Rakesh Jhunjhunwala founded Akasa in 2021, owns 45.97% of the airline. Other significant shareholders include CEO Vinay Dube with a 16.13% stake, Madhav Bhatkuly with 9.41%, Sanjay Dube and Niraj Dube each with 7.59%, and PAR Capital Ventures Llc with 6.37%.
Akasa Air flies to 16 destinations within India with its fleet of nineteen B737-8s and single B737-8-200. A spokesperson for Akasa said the airline had generated cash from day one, and the initial investments provided by the Jhunjhunwalas and others remained intact...
