New Delhi, India: Akasa Air has backed the Centre’s reported proposal to allow airport operators to own airlines, with Founder and Chief Executive Officer Vinay Dube expressing confidence that the government will introduce appropriate safeguards while framing the policy. At the same time, the airline is preparing for its next phase of expansion, with plans to explore an initial public offering (IPO) within the next two to five years as it continues to strengthen its financial position.
Speaking in an interview with PTI, Dube said India requires greater competition in the aviation sector and that consumers would ultimately benefit from having more airline choices. His remarks come amid reports that the government is considering changes to existing norms that would permit airport operators to establish or own airlines.
According to Dube, any framework allowing airport operators to own airlines would naturally involve regulatory and competitive considerations, particularly when a private entity controls both airport infrastructure and an airline. However, he expressed confidence that policymakers are fully aware of these issues and will incorporate the necessary safeguards while drafting the legislation.
“I am very confident that the government will take into account the considerations involved when a private enterprise owns both an airport and an airline. Therefore, I am happy and supportive of this move,” Dube told PTI.
Emphasising the need for a more competitive aviation market, he said India can and should support multiple airlines to meet growing passenger demand. While acknowledging potential concerns surrounding ownership structures, he stressed that the larger objective should remain expanding consumer choice and encouraging healthy market competition.
The comments come shortly after IndiGo Co-Founder and Managing Director Rahul Bhatia publicly warned that permitting airport operators to own airlines could create a “massive conflict of interest.” A day later, the Adani Group, which currently operates eight airports across India, denied media reports suggesting it planned to enter the airline business.
The policy discussion is unfolding as India continues to rank among the world’s fastest-growing domestic aviation markets, with the government pursuing measures aimed at expanding connectivity, increasing airline capacity and encouraging new entrants.
Akasa Air, which commenced commercial operations on August 7, 2022, will complete four years of operations this week. The airline currently operates a fleet of 40 Boeing 737 aircraft and has steadily expanded its domestic and international network since launch.
The government’s commitment to promoting competition was reiterated earlier this week when Civil Aviation Minister K. Rammohan Naidu, in a written reply to the Rajya Sabha on August 3, said the Centre remains committed to creating a conducive environment that supports the growth of existing airlines while facilitating the entry of new operators.
In a separate interview in the past, Dube also outlined Akasa Air’s long-term financial roadmap, revealing that the carrier intends to evaluate an initial public offering within the next two to five years.
He said the airline remains financially healthy, describing Akasa Air as cash-positive and noting that its financial performance is progressing in line with management expectations. While confirming IPO plans are under consideration, Dube stressed that the airline will continue to prioritise sustainable expansion rather than pursuing aggressive fleet or network growth simply to increase its size.”We will not chase growth for the sake of growth,” Dube said.
Akasa Air strengthened its financial position last year by raising fresh capital from investors, including Premji Invest and Claypond Capital, with the funds earmarked primarily for network and operational expansion.
The airline has also outlined ambitious fleet expansion plans. Earlier, Chief Financial Officer Ankur Goel said Akasa Air aims to induct enough aircraft to build a fleet of 226 airplanes by the end of 2032, while continuing to improve financial performance and increase capacity.
Official aviation data showed Akasa Air held a 5.4% domestic market share during the latest reporting period cited in the PTI report, underscoring its steady growth since entering India’s highly competitive airline sector.
With supportive financial fundamentals, an expanding fleet, and a long-term IPO strategy, Akasa Air is positioning itself for sustained growth while advocating for policy reforms that it believes could further strengthen competition in India’s rapidly evolving aviation industry.
