Akasa Air Plans Expansion to Kenya, Egypt, and East Africa, Confident in Boeing Delivery Timeline

Akasa Air Plans Strategic Expansion into East Africa and Beyond

Akasa Air, the rapidly growing Indian carrier, has announced ambitious plans to extend its international network to include destinations in Kenya, Ethiopia, Egypt, and other parts of East Africa. Vinay Dube, the airline’s CEO and founder, expressed confidence in the airline’s ability to support this expansion, citing the capabilities of its Boeing 737 MAX fleet and a reliable aircraft delivery schedule.

Expanding Reach with Boeing 737 MAX

Since its inception three years ago, Akasa Air has steadily increased its domestic and international presence. Currently, the airline serves six international cities—Doha, Jeddah, Riyadh, Abu Dhabi, Kuwait City, and Phuket—alongside 24 domestic destinations. The network is poised to grow further, with new services to Sharjah anticipated soon. Dube emphasized the operational range of the Boeing 737 MAX aircraft, stating that the airline is well-positioned to fly to East African destinations such as Mauritius, Kenya, Ethiopia, and Egypt, as well as to Central Asian countries like Kazakhstan and Uzbekistan. The fleet’s range also opens possibilities for deeper penetration into South Asia.

Akasa Air’s international share of Available Seat Kilometres (ASK), a key metric for passenger capacity, has reached 20% and is expected to rise to approximately 30% by March 2027. The airline currently operates 30 Boeing 737 MAX aircraft and plans to add more than one additional plane this year. With firm orders for 226 aircraft, Dube expressed optimism about the delivery timeline, noting improved predictability following the US Federal Aviation Administration’s recent approval for Boeing to increase monthly 737 MAX production. This development is expected to alleviate previous delivery backlogs and support Akasa Air’s growth ambitions.

Navigating Challenges and Strategic Partnerships

Despite the promising outlook, Akasa Air’s expansion into East Africa faces potential challenges. Regulatory complexities, competition from established carriers, and infrastructural limitations at regional airports could pose obstacles. The entry of Akasa Air into these markets may intensify competition, potentially leading to lower fares and enhanced service quality. Existing airlines might respond with strategic alliances, increased marketing efforts, and fleet investments to maintain their market positions.

In line with its growth strategy, Akasa Air plans to finalize new codeshare and interline partnerships in the coming financial year, building on its existing agreement with Etihad Airways. Dube highlighted the importance of scaling the airline to become an attractive partner for such collaborations, which are critical for expanding network connectivity and passenger convenience.

Addressing recent concerns raised by India’s Directorate General of Civil Aviation (DGCA) regarding operational lapses, Dube assured that all issues have been resolved to the regulator’s satisfaction, affirming that there are no safety concerns.

Financial Outlook and Fleet Considerations

Financially, Akasa Air remains robust, having secured fresh capital in August from investors including Premji Invest and Claypond Capital to fuel its expansion. The airline is also contemplating an Initial Public Offering (IPO) within the next two to five years to further strengthen its financial position.

Regarding fleet diversification, Dube indicated that the airline continues to evaluate the potential addition of wide-body or regional aircraft. However, he noted that current analyses have not justified such a move, emphasizing a focus on long-term economic viability. Presently, Akasa Air operates an all-economy class configuration across its Boeing 737 MAX fleet, aligning with its cost-efficient operational model.