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.