PARIS, FRANCE — Emerging Indian Airline Akasa eyes expansion, in talks for additional Boeing 737 MAX order.
Akasa Air, the fledgling Indian airline, is reportedly in discussions with US aircraft manufacturer Boeing regarding a follow-on order for 737 MAX single-aisle jets, contingent upon the securing of necessary financing, as per Bloomberg.
As the Paris Air Show unfolds this week, the planemaker is striving to conclude the negotiations posthaste, according to sources who requested anonymity due to the confidential nature of the talks.
However, financial hurdles stand in the way of a potential agreement, exacerbated by the demise of Akasa's billionaire founder and the insolvency of India's Go Airlines, leaving the fate of the deal uncertain. Should the accord materialize, Akasa might purchase 10 or fewer aircraft, as indicated by one of the insiders.
Having initiated its operations just a year ago, Akasa, the latest entrant to India's aviation industry, has received 20 out of the 72 MAX jets from its previous order. Vinay Dube, the airline's Chief Executive Officer, stated in March that the low-cost carrier aimed to place a three-digit order for more aircraft by the end of the year. However, the fallout from Go Airlines' insolvency has left aircraft lessors cautious about extending their commitment to the market.
Meanwhile, the highly competitive Indian aviation sector is witnessing significant orders from the newly privatized Air India, and market frontrunner IndiGo is anticipated to announce a 500-aircraft order at the show, potentially doubling its existing backlog. The recent passing of Akasa's founder, billionaire Rakesh Jhunjhunwala, in August has stirred doubts about the airline's future financial prospects.
