15/05/2024
Akasa Air reveals second international route to Jeddah following successful Doha launch
• Akasa Air has also been granted traffic rights for two other international destinations namely Kuwait, and Riyadh in Saudi Arabia
Indian carrier Akasa Air has announced its second international route following the successful launch of operations to Doha, Qatar on March 28, 2024.
In a statement on May 13, 2024, Akasa Air confirmed that from July 15, 2024, it will launch daily direct flights between Chhatrapati Shivaji Maharaj International Airport (BOM) in Mumbai, India (BOM) and King Abdulaziz International Airport (JED) in Jeddah, Saudi Arabia.
From there, Akasa Air will increase the number of flights between the two cities to 12 a week from July 21, 2024, and additionally launch operations between JED and Sardar Vallabhbhai Patel Airport (AMD) in Ahmedabad, India, twice a week from July 20, 2024.
“We are thrilled to expand our presence in the Middle East with the addition of Jeddah to our growing network. We are extremely proud to witness our global footprint grow alongside our domestic services, with the addition of our second global destination within a short time,” said Neelu Khatri, Akasa Air Co-Founder and SVP International, Akasa Air.
Khatri added: “Jeddah’s unique character defined by its distinct heritage and prominence as a commercial hub has gained immense popularity amongst Indian travelers in the past few years, driving an exponential surge in the demand for air travel between the two countries.”
Akasa Air’s first international flight took off in March 2024, after the airline launched commercial services on domestic routes in India on August 7, 2022.
Akasa Air has also been granted traffic rights for two other international destinations namely Kuwait, and Riyadh, and will be rapidly expanding its global presence in the coming months.
“Our strategically designed connections linking Jeddah with two key Indian cities – Mumbai and Ahmedabad will cater to a variety of tourists, fostering bilateral trade and tourism,” said Praveen Iyer, Co-Founder and Chief Commercial Officer at Akasa Air.
At Wings India 2024, Akasa Air announced an order with Boeing for 150 jets comprising both 737 MAX 10s and 737 MAX 8-200, with all deliveries expected to be completed before 2032.
This was in addition to the outstanding order for 76 737 MAX 8 aircraft that Akasa Air already has in place with Boeing.
The airline currently operates 23 737 MAX aircraft.
Boeing and Akasa expansion plans
Central to Akasa's expansion strategy is its substantial order of 226 planes with Boeing. The airline seems confident about the planemaker's capabilities.
ndia’s newest airline, Akasa Air, made its international debut in Doha, Qatar in March — just 19 months after its launch.
Akasa has also been granted traffic rights for three other international destinations: Kuwait, Jeddah and Riyadh. And co-founder and chief commercial officer Praveen Iyer told Skift the airline would be rapidly expanding its global footprint.
Since its launch in August 2022, Akasa Air has flown over 8 million passengers connecting 22 cities. The airline had a domestic market share of 4.1% in 2023.
Why Begin in Doha?
The decision to debut internationally in Doha, Qatar, was not arbitrary, Iyer said. “We had been granted flying rights to Qatar, a couple of points in Saudi Arabia and Kuwait. Each of these countries are constrained for capacity, and were therefore interesting markets.”
With a focus on capacity-constrained markets and robust traffic flows between India and the Gulf, Doha emerged as a prime choice for Akasa’s international expansion.
“We just saw value in utilizing our assets with Qatar and that’s what prompted us to start operations in this route,” said Iyer.
Iyer further said that the traffic flows between India and the Middle East will only grow with each passing year: “No wonder airlines have been requesting for bilaterals to be expanded,” he said.
Future Routes and Factors Influencing Choices
When it comes to selecting future routes, Akasa will prioritize factors such as aircraft capabilities, capacity constraints, bilateral availability and network connectivity, according to Iyer.
With a fleet capable of flying within a six-hour radius of India, Akasa eyes potential routes across the Gulf, Southeast Asia, Far East, points of East Africa. Moreover, the airline strategically deploys its assets from key metropolitan cities in India, like Mumbai, Delhi, and Bengaluru, to cater to diverse market demands.
“We have 26 departures out of Mumbai, close to 13 departures out of Delhi and around 25 departures from Bengaluru. We deploy our assets based on the connectivity available from each of these points,” he said.
After Doha, Akasa now looks to introduce flights to Jeddah and Riyadh as well as Kuwait. “It’s a matter of time before we make these announcements, as well,” Iyer said.
Akasa’s Orders vs Production and Safety Issues at Boeing
Despite industry-wide production challenges, Akasa remains optimistic about its fleet expansion and international operations.
Iyer emphasized a planned delivery schedule aligned with the airline’s growth. While acknowledging occasional deviations from the plan, he said, “I’m a big fan of the T 20 format in cricket, but running an airline is more like a Test match.”
Akasa has placed an order of 226 planes with Boeing, of which 24 have been delivered. The delivery of the remaining 202 aircraft will go all the way through to 2032. “We have 8 years to take delivery of all the aircraft. By 2027, we would have more than 70, we are on track. Boeing’s ability to deliver versus Akasa’s willingness to deploy is very well aligned.”
Addressing safety concerns, Iyer called the Boeing 737 Max one of the most scrutinized aircraft worldwide. “Our safety standards are well above the norms set by (Indian aviation watchdog Directorate General of Civil Aviation) DGCA,” he said. “We would recommend everybody to fly the Max. It’s all the safest aircraft that you can find.”
Focus on Tier 2 and Tier 3 Cities
Akasa’s focus on tier 2 and tier 3 cities reflects shifting market dynamics and the untapped potential in regional connectivity. Iyer highlighted the increased relevance of these cities, especially amid the Covid-19 pandemic, and Akasa’s role in addressing the demand-supply gap in India’s domestic aviation market.
Prior to Covid-19, Iyer noted that there was a strong emphasis on metropolitan routes such as Mumbai-Delhi, Delhi-Bengaluru, and Delhi-Chennai.
“The way in which we have deployed our capacity, tier-2, tier-3 cities dominate it, right from Ayodhya, Prayagraj, Gorakhpur, Guwahati to Agartala,” he said.
Despite the conventional airline practice of multiple frequencies between major routes, Akasa remains undeterred, recognizing India’s existing capacity constraints.
Iyer noted that in February 2020, the number of departures in India domestic was about 3,200, today it stands at around 3,100. “We may have crossed the number of seats utilized, but we’ve certainly not crossed the capacity,” he said, indicating untapped capacity.
Akasa’s strategic timing in deploying assets during a period of capacity shortage in smaller cities has bolstered its confidence to further expand in these cities.
