Pandemic has not spared any Business and the sector that is worst hit is travel and hospitality. The tourism sector faced severe trouble from the pandemic and is presently facing difficulty to regain its lost position. One of the biggest parts of the travel business is the aviation industry and needs big funds to revive and sustain.
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Aviation players are bearing heavy costs in maintaining their loss-making business. But, the believers still hold positive in the sector and have a belief that the sector will rebound with a strong push after everything is back on track.
With the same hope, India's well-known veteran investor Rakesh Jhunjhunwala is investing in the Akasa airlines business by infusing around 35 million US dollars that secured him 40% of the stake. The big bull and the country's popular aviation personality Vinay Dube (former CEO, Jet airways) are onboard to launch a new rival for the existing airline players.
Akasa airlines claimed to be a low-cost economical air carrier that is planned to launch anytime between April-June, 2022. It is prepared to introduce 70 aircraft under its airline business with a few years. Let us derive a detailed story from the article below and understand the Akasa business model.
About: Akasa
Will Akasa airline be able to position itself in a market dominated by strong players?
Akasa business model
Akasa has a competitive advantage in terms of cost as it is willing to provide a relatively economical traveling cost to its passengers. Starting from acquiring a budgeted fleet additionally, they need to work on their operations to maintain the low-cost advantage. Claiming to be a low-cost carrier, Akasa may face stiff competition from its alike companies: Spicejet, Indigo, Vistara, etc.
But, the best part is that they can avail varied benefits from India's UDAN scheme that promotes subsidizing airfares. To avail affordable air traveling for people. Also, Akasa backed with brilliant minds Vinay Dube and Rajesh Jhunjhunwala collectively will control the cost and manage the working capital in a better manner.
Vijay Dube, a former CEO of Jet airways, will focus on factors that are crucial for deriving great service at an affordable price. Coming from the board of a popular airline company, he already have a tremendous experience generating a healthy revenue without compromizing amenties provided to the passengers.
Previewing the Akasa business model, then they are planned to start its services in the domestic market initially and maybe with the coming years they will expand their reach.
Take away
Due to the prevailing conditions, it is quite hard for begaining any new business. Every time their is a fear of uncertainity and variability in the market. But this harshness brings in a golden oppurtunites for various new establisments as now new aquirers have a bargaining capacity that was missing during the boom.
So, investors believe that this is the right time to start something fresh. As a reason Rakesh Jhunjhunwala is equipped to set this company in the aviation sector with a support of industry experts.
From the article above we got an insight into the Akasa business model and sense crucial facts about it. This reading would be helpful for the readers who are willing to update themselfves with promient points about the Akasa airlines and its business.
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