14-Month Old Akasa Air's IPO Dream: Late Rakesh JhunJhunwala-Backed Airline Plans Public Listing; But When?

India's newest airline, Akasa Air is mulling to launch its initial public offering (IPO). The 14-month-old airline which was backed by late market mogul Rakesh Jhunjhunwala, is planning to list on bourses by the end of the decade. Rakesh's wife Rekha is currently among the major shareholders of Akasa Air.

When asked about plans for a public listing, Akasa Air's Chief Executive Officer Vinay Dube told PTI "I don't think 2027 will be possible for a listing, but the listing is something that we definitely want to do. We may have to gather a little more history before we can list. Certainly, listing or an IPO is something that we would desire".

On the question of whether a listing is possible by the end of the decade, the former CEO OF Jet Airways, Dube said that is a "much more realistic goal".

At present, Interglobe Aviation aka Indigo which is the largest airline in India in terms of market share, and low-cost carrier SpiceJet are the only ones to be listed on stock exchanges. Earlier, Go Air, now known as Go First, had filed a draft prospectus for an IPO launch however that did not take off well. However, Go First is now grounded and undergoing bankruptcy.

Meanwhile, Akasa Air which is planning to operate international flights soon, aims to gather a little more history before going public, as per Dube.

In regards to rumours of the Jhunjhunwala Family's exit from Akasa Air, Dube told PTI, "We also hear rumours about the Jhunjhunwala family leaving, which are absurd, and the family says that they are invested with us for the long run."

Akasa Air launched its first commercial flight on 07 August 2022 to support the growing demand across India.

After the completion of 1 year, the airline said, the landmark addition of its 20th aircraft, heralds the next chapter of growth in the Akasa Air story, driving Akasa's foray into international skies, and allowing the airline to showcase its unique category re-defining service to the world. With this immense impetus to its growth plans, Akasa will get access to international flying opportunities as it prepares to commence international operations by December 2023.

With an initial fleet induction plan of adding one brand new aircraft every 15 days, Akasa Air has created the record of becoming one of the fastest-growing airlines in the 120-year history of global aviation by achieving a fleet size of 20 new aircraft within 12 months of commercial operations.

Further, the delivery of its 20th aircraft on 1 August 2023, makes Akasa Air the first airline in Asia to add the 737-8-200 variant of the Boeing 737 MAX aircraft to its rapidly expanding fleet. Akasa Air's order book comprises 76 jets which include 23 737-8s and 53 737-8-200 airplanes. In addition, the airline remains fully committed to placing a three-digit aircraft order by the end of 2023.

In its first year of commercial operations, Akasa Air has already served 4.3 million passengers and crossed the milestone of operating over 900 weekly flights with a published network of 35 unique routes across 16 destinations. It has also carried over 25,000 tonnes of cargo across its network during this time.

In a short span of a year, Akasa Air has grown its market share from 0% to 4.9%, having registered a passenger load factor of over 84% since the start of operations, with a steadily growing record of close to 90% in the current financial year. While developing its operations, the airline has maintained a steadfast commitment to becoming India's most dependable airline, evidenced by industry-leading on-time performance for several consecutive months of operations in 2023.

At present, Akasa Air is home to over 3,000 employees and has additionally created numerous indirect jobs within the aviation ecosystem. It expects to reach an employee strength of over 3500 by March 2024, to support its expansion plans.