Picture credits: Akasa Air
India: Akasa Air is experiencing operational difficulties due to Boeing’s delayed aircraft deliveries, leaving a significant number of its pilots without work. The airline, backed by an Indian billionaire’s family, is among several carriers affected globally as Boeing faces production setbacks and regulatory scrutiny.
The Mumbai-based budget airline, which launched operations three years ago, currently operates 27 aircraft but has 226 Boeing 737 MAX jets on order.
Deliveries have been postponed following increased regulatory oversight after a mid-air cabin panel detachment incident last year and disruptions caused by a seven-week workers’ strike at Boeing.
Internal Concerns Over Delays
While Akasa has publicly expressed confidence in Boeing, internal discussions have revealed concerns.
During a February town hall meeting, executives discussed the operational challenges arising from aircraft shortages, according to an audio recording reviewed by Reuters.
Priya Mehra, Chief of Strategic Acquisitions, described Boeing as the “elephant in the room,” citing the impact of the strike.
Co-founder Aditya Ghosh noted that the delays were “retarding our speed.”
CEO Vinay Dube acknowledged the strain on operations, stating, “We just don’t have enough aircraft to fly, nobody wants to sit at home and twiddle their thumbs.”
Boeing’s Production Issues Affect Global Airlines
Boeing’s delays have impacted several airlines worldwide. U.S. budget carrier Southwest Airlines, which exclusively operates Boeing aircraft, recently conducted company-wide layoffs, in part due to delayed deliveries.
Akasa’s competitor, Air India, which placed an order for 220 Boeing aircraft in 2023, stated that global aircraft shortages could persist for four to five years.
However, Akasa, with a 4.7% share of the domestic market, faces a greater challenge due to its smaller scale and ongoing expansion efforts.
The airline initially projected a fleet size of 72 aircraft by March 2027 but now expects to operate 54 by October 2026.
Financial and Workforce Challenges
Akasa’s revenue increased to $356 million last year, but its net loss also grew from $86 million to $194 million. Employee costs more than tripled to $90 million.
During the town hall, Mehra informed pilots that CEO Dube had asked Boeing to shift its focus from hosting “big events and parties” to addressing production delays.
Boeing has not responded to requests for comment. Co-founder Ghosh, previously an executive at IndiGo, estimated that it would take 16 to 20 months to double Akasa’s fleet size.
Pilot Shortages and Workforce Adjustments
Akasa’s pilot workforce has been directly affected by the aircraft shortage. Of its 775 hired pilots, only 465—about 60%—are actively flying, while 310 remain without assigned aircraft. The airline stated that “most of the remaining 300 pilots will also be able to fly by 2025-end” but did not specify how this would be achieved.
Several pilots have raised concerns over the lack of flight hours, which impacts both earnings and career progression. A pilot, speaking on condition of anonymity, stated, “I am making peanuts sitting at home,” referring to lost incentives.
Those seeking to leave the airline face a $41,700 training bond repayment. Annual pilot salaries at Akasa range from $35,000 to $111,000 for 40 hours of monthly flight time.
In December, the airline informed pilots via email, according to Reuters, that those awaiting training had an opportunity to develop skills in IT and engineering, though their compensation would remain unchanged.
Akasa stated that this initiative was not a temporary measure but part of a broader career development strategy.
Akasa continues its expansion efforts, though its future operations remain dependent on Boeing’s ability to meet delivery commitments.
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