Jhunjhunwala’s startup Akasa to begin flying in India late July

Akasa Air, India’s newest airline backed by billionaire Rakesh Jhunjhunwala, expects to start operations in one of the world’s most competitive aviation markets later this month.

Akasa received its flying license from the Indian aviation regulator Directorate General of Civil Aviation after successfully operating test flights, it said in a statement Thursday. Chief Executive Officer Vinay Dube said this marks the entry of “India’s greenest, most dependable and most affordable airline.”

The low-cost airline, which took delivery of its first Boeing Co. 737 Max jet last month, intends to start operations with two aircraft. Akasa will add 18 jets by the end of the year ending March 2023 and then induct 12 to 14 aircraft every year, bringing its fleet to a total of 72 planes over five years, according to the statement.

Akasa, whose other backers include Aditya Ghosh, the executive who spearheaded low-cost carrier IndiGo for nearly a decade, is looking to succeed in a market that’s known for crushing fare wars and high costs. The competition for Akasa will intensify in India’s crowded low-cost aviation market, where IndiGo controls 55% share and Jet Airways India Ltd. plans to resume operations by September.

Akasa is trying to stand out from rivals by taking an unusual approach of offering stock options to a larger pool of top employees, rather than a select group of senior executives, Dube said in February. With a focus on sustainability, Akasa’s cabin crew will wear clothes made from recycled fabrics such as plastic bottles recovered from marine waste.