Akasa Air to close a deal for 150 Boeing 737 MAX planes in an effort to expand its fleet

In a move to capitalize on the surging demand in India’s rapidly growing aviation market, budget carrier Akasa Air is reportedly finalizing an order for approximately 150 Boeing 737 MAX narrow-body planes. Sources reveal that negotiations are underway, with an official announcement expected at Wings India, the nation’s largest civil aviation event, scheduled for 18-21 January 2024.

This order supplements Akasa’s existing order book for 76 Boeing 737 MAX planes.

As India’s newest airline, Akasa has swiftly captured a 4% market share since its launch in 2022, despite facing challenges such as the sudden departure of approximately 10% of its pilots in 2023. Chief Commercial Officer Praveen Iyer, in a December 2023, interview, hinted at a substantial aircraft order in early 2024 without disclosing specifics.

The new order for around 150 planes is anticipated to include future purchasing options. Akasa, which currently operates domestically with a fleet of about two dozen planes, aims to use these narrow-body Boeing aircraft to facilitate both domestic and international expansion, particularly to nearby international destinations like Southeast Asia and the Middle East.

India’s airlines, including Akasa, are racing to meet the heightened demand for air travel following the post-COVID surge. IndiGo set a record in June 2023 with an order for 500 Airbus narrow-body planes, surpassing Air India’s combined order for 470 jets from Airbus and Boeing in early 2023. This move positions Akasa as another success for Boeing, which has been striving to catch up with Airbus in India’s rapidly expanding aviation market.