Akasa Air' Southeast Asia, Indian Subcontinent Expansion

DALLAS – India's budget carrier, Akasa Air (AK), plans to expand its wings beyond domestic skies. AK is eyeing lucrative Southeast Asian and Indian subcontinent markets to capitalize on the surging demand for air travel among its countrymen.

The Mumbai-based airline (BOM) is gearing up to launch flights to Kathmandu (KTM), Nepal, and Dhaka (DAC), Bangladesh, as confirmed by Praveen Iyer, chief commercial officer of Akasa's parent company SNV Aviation Pvt.

This expansion is part of a broader plan that includes other popular destinations like Thailand (BKK), Vietnam (HAN), Malaysia (KUL), and Indonesia (CGK).

Capitalizing on Booming Outbound Travel

Iyer emphasized India's robust outbound travel trend, particularly to Southeast Asia. "Indians in general love traveling. That prompts us to look at the next set of expansion," he stated. The airline's rapid growth, with five new international routes added this year alone, underscores the growing demand for air connectivity as Indians' disposable incomes rise and visa restrictions ease.

Akasa Air is also bracing for intensified competition as industry giants consolidate their positions. The merger of Tata Group-owned Air India (AI) and Vistara (UK), coupled with IndiGo's (6E) expansion into long-haul international routes, will reshape the competitive landscape.

Moreover, foreign carriers like Etihad Airways (EY) and Malaysia Airlines (MH) are strengthening their presence in India.

Fleet Expansion, Network Growth

To support its ambitious expansion plans AK ordered 150 Boeing 737 MAX jets, bringing its total order book to 226 aircraft. This fleet will be instrumental in growing the airline's short-haul international network, leveraging the aircraft's capabilities for up to six-hour flights. AK commenced international flights in March 2023 with flights to Doha (DOH) from Mumbai, followed by the addition of Abu Dhabi (AUH) and Jeddah (JED).

Despite operating in a highly competitive market, AK has managed to secure a 4.7% market share so far this year, as reported by Bloomberg. The airline is financially sound and does not have fundraising plans. However, Iyer declined to disclose specific profitability targets.