Allowing airport operators to own and run airlines is logical, says Akasa CEO Vinay Dube as airline turns four

Akasa Air founder and CEO Vinay Dube has backed a proposal to allow airport operators to hold bigger stakes in airlines and run them, according to Saurabh Sinha's TOI report.

Akasa, which turned four on Friday, is learnt to be trying to raise about $110 million through debt and equity as rising oil prices since March have pushed up operating costs for airlines globally, with the weakening rupee adding pressure in India, the report said. Dube denied being in touch with the Adani Group, India's biggest private sector airport operator by number of airports, for investment.

Does this contradict IndiGo's stance?


Dube's position is at odds with that of IndiGo founder and MD Rahul Bhatia, who had recently said there is no global precedent for airport operators owning and running airlines, calling it a move that raises conflict of interest concerns and does not clearly serve consumer interests.

Also read: India’s youngest airline Akasa Air seeks funds as Iran war drives up costs

Under current rules, which may be reviewed following a recent request from the Adani Group, operators of the Delhi and Mumbai airports cannot own more than a 10 per cent stake in any airline.

"We continue to be well capitalised and recently got some funds under the emergency credit line guarantee scheme. I can unequivocally say that neither we have reached out to them (Adani), nor they to us. The idea of allowing airport operators to own and run airlines is logical as the country needs more competition. As far as the apprehensions of this go, I am sure the government will take them into account. Akasa itself is the beneficiary of the government's stand to promote competition," Dube said, according to TOI. He described Akasa, now India's third largest domestic airline after IndiGo and the Air India group, as an experience-led carrier.

How much did Akasa lose in FY25?

Like other Indian airlines, Akasa has been losing money since inception. It reported a loss of Rs 1,983 crore in FY25, nearly 19 per cent higher than the previous fiscal's loss, the report said.

Asked whether investors were concerned, Dube said the losses did not worry him because the airline was performing better than planned financially. "We have planned for this and have got jet fuel in our blood. We're hardcore planners and plan long term. Akasa has got a lot of financial discipline," he said.

Fleet and expansion plans

The airline currently operates 40 aircraft and will add three more this month. It has 186 planes on order, to be delivered by December 2032. Dube said that between April and June, Akasa operated 185 daily flights, with 75 per cent of its available seat kilometre (ASKM) capacity deployed on domestic routes and the rest on international routes. Further aircraft orders, and whether the airline will consider wide-bodies and regional jets, will be evaluated after one to two years, he said.

Also read: Akasa Air backs plan to let airport operators own airlines: CEO Vinay Dube

Akasa currently operates only Boeing 737 MAX single-aisle aircraft and has 5,475 employees, including 800 pilots. Dube said the airline resumed hiring pilots about a year ago and has since added 75 more.

Like IndiGo and Air India, Akasa has also launched a cadet pilot programme, which Dube said is not a profit centre for the company. "We realise pilot training must be affordable and offer discounted rates for our employees' children opting for the cadet programme," he said.

(With inputs from The Times of India)