Ace Investor Rakesh Jhunjhunwala Exploring Plans To Invest In A New Low-Cost Airline Venture
Ace Investor Rakesh Jhunjhunwala Exploring Plans To Invest In A New Low-Cost Airline VentureRakesh Jhunjhunwala (Kunal Patil/Hindustan Times via Getty Images)

Ace investor Rakesh Jhunjhunwala is said to be exploring a plan to invest in building a low-fare airline venture led by a team of senior aviation professionals, reports Economic Times.

Jhunjhunwala is believed to have held preliminary talks to invest as much as $35 million (Rs 260 crore) in the new airline which has been tentatively christened 'Akaasa' which means the sky.

A team led by former Jet Airways chief executive Vinay Dube is said to have held an initial round of discussions with Jhunjhunwala and a foreign investor in this regard.

Akasa has already applied for the Union Ministry of Civil Aviation's no-objection certificate (NOC) earlier this year. The airline plans to begin operations from the middle of next year.

It should be noted though that the Ministry's NOC will just be the first step in setting up the airline. For further applications, the airline will need to draw up a business plan for which funds will be needed.

In this light, if the investment from Jhunjhunwala manifests, he could own as much as 40 per cent equity shareholding in the company.

“The aviation ministry’s NOC is just the first approval. For further applications, the team needs to draw up a firm business plan for which it needs funds. Everything depends on when and how much money they can raise. The aim is to start the airline by the middle of next year,” said an industry source.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber