India’s youngest airline, Akasa Air, is grappling with serious operational challenges due to Boeing’s ongoing production and delivery delays. The Mumbai-based low-cost carrier, which started operations three years ago, has 27 aircraft in its fleet and a massive order of 226 Boeing 737 MAX jets. However, the airline’s expansion plans have been hampered as Boeing faces regulatory scrutiny and workforce disruptions, including a seven-week strike.
Despite publicly expressing confidence in Boeing, Akasa executives have voiced their frustrations in internal meetings. During a February town hall with pilots, Akasa’s Chief of Strategic Acquisitions, Priya Mehra, called Boeing the “elephant in the room” responsible for sleepless nights. Co-founder Aditya Ghosh was more direct, blaming Boeing for “retarding our speed.”
Financial struggles and market position
While Akasa’s revenue surged to $356 million last year, its losses widened to $194 million from $86 million the previous year. The airline holds just a 4.7% market share, significantly behind industry leaders IndiGo and Air India. As a small player in a highly competitive market, Akasa’s reliance on timely aircraft deliveries is critical.
CEO Vinay Dube has urged Boeing to focus on production rather than events and celebrations. While Boeing has acknowledged delays, it has not provided clear responses regarding Akasa’s concerns.
Pilot frustrations and idle workforce
With only 465 of its 775 hired pilots actively flying, frustration is growing among idle employees. Many pilots who joined months ago remain grounded due to the lack of operational aircraft. Unable to clock incentives or progress in their careers, some pilots are left earning minimum salaries while sitting at home.
A major concern is that leaving the airline would require pilots to repay a training bond of $41,700, making it financially unviable to quit. Employee costs have surged to $90 million, adding further pressure to the airline’s finances.
Despite these setbacks, Akasa continues its expansion efforts, having launched international routes to Qatar and Saudi Arabia. The airline also secured fresh investment from billionaire Azim Premji’s investment firm and the family of late investor Rakesh Jhunjhunwala. Akasa has assured that most of the idle pilots will be flying by the end of 2025, though specifics remain unclear.
With its ambitious plans now facing hurdles, Akasa is left to deal with a complex landscape of supply chain disruptions, financial stress, and employee dissatisfaction.
(With Reuters inputs)