New Indian airline Akasa ekes out 1% share of crowded skies

India’s newest carrier Akasa Air took a 0.9% share of the domestic market in September, its first full month operating in a country where almost a dozen airlines vie for passengers. 

The low-cost carrier, backed by the billionaire Rakesh Jhunjhunwala who died in August at the age of 62, is trying to muscle into a market that continues to be dominated by IndiGo, which had a nearly 58% share in September, according to data published by the Directorate General of Civil Aviation. 

Akasa started flying between Mumbai and Ahmedabad on Aug. 7 using Boeing Co. 737 aircraft. It expanded to Bengaluru and Kochi later in the month, and its website shows it now also flies to New Delhi, Guwahati, Agartala and Chennai.

The carrier’s debut came at a particularly turbulent time in Indian aviation, which had been rocked by the Covid pandemic as well as a spate of mid-flight incidents involving various carriers that led to inspections by the regulator. 

Chief Executive Officer Vinay Dube has said Akasa is financially strong enough to place larger orders and expand its fleet to 72 aircraft within five years.

Competition among India carriers in September was fairly even beyond IndiGo, which is operated by InterGlobe Aviation Ltd. Singapore Airlines-backed Vistara and Air India Ltd. both took about 9% market share, and SpiceJet Ltd. grabbed 7.3%, according to the DGCA.