Aircraft delivery delays, regulatory lapses take shine off Akasa Air’s growth

In August 2023, when Akasa Air celebrated its first anniversary, inducting its 20th Boeing 737 Max aircraft, it was among the fastest growing airlines in the world. The skies looked clear for it to soar as Go First had declared insolvency a few months earlier and IndiGo was hamstrung with aircraft engine issues.

But 15 months on, Akasa Air has hit a speed bump. A series of regulatory lapses has blemished its record.

“Akasa Air’s growth was industry leading in the first year of launch. Since then, growth has slowed down with the airline adding only six aircraft since August 2023. A lot of this is due to the ongoing challenges at Boeing due to a cap on assembly of 737 MAX aircraft imposed by the US Federal Aviation Administration,” said Ajay Awtaney, Editor, LiveFromALounge.com, an Indian aviation and loyalty-focussed website.

“Akasa Air had a tepid 2024 in terms of fleet addition and this meant it could not make the most of available opportunities,” said Ameya Joshi, founder of aviation blog Network Thoughts

Akasa Air’s fleet was expected to grow to 40 aircraft by March 2025. Now it is projected to reach 28.

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According to aviation analytics firm Cirium, Akasa Air is scheduled to operate around 138 flights daily in January, a 20 per cent year on year increase in frequencies. It currently operates to 27 destinations in India and overseas.

Capacity measured in available seat kilometre basis is higher by 58 per cent in the same period due to increased aircraft utilisation and launch of international routes

“We are dedicated to maintaining our position as India’s most on-time airline and our focus on reliability, service excellence and employee centricity will remain a cornerstone of our strategy as we redefine the travel experience for travellers across India and beyond,” Akasa Air CEO Vinay Dube said in a statement.

Strengthening leadership

On Tuesday the airline designated Belson Coutinho as its chief operating officer. Coutinho who is one of the co-founders of the airline headed the marketing and experience function until now.

In the new role, he will be responsible for inflight Services, airport Services, maintenance, flight operations among other functions. The appointment comes in the backdrop of regulatory action against the airline for safety lapses and service deficiencies.

Late last month the Directorate General of Civil Aviation suspended the airline’s director of training and operations for lapses in training. It was also fined Rs ten lakh for not compensating passengers after a denied boarding incident.

The airline’s pilots too have complained of favouritism and bias by senior management and have asked for an independent probe into management practices and safety standards.

While some of the complaints may be a result of infighting among pilots, they do point to a deeper malaise. “ Safety lapses or violations happen in airlines around the world. There are laid down procedures to address them. But when lapses happen repeatedly it is a worrying trend,” said an aviation source. He added that the senior management needs to engage a lot more with its pilots.

Safety is of utmost importance, the airline said last week. It did not comment on businessline queries on training and regulatory issues.

More pilots, few planes

Pilots often complain of being overworked and stressed. In Akasa Air the reverse could be said to be true for a large section of pilots.

The airline accelerated its hiring after August 2023 after 40 pilots quit overnight. While Akasa operates Boeing 737 Max planes it hired even those who flew other types of aircraft. While transition from one aircraft type to another entails elaborate training, a shortage of instructors and examiners slowed down the process.

While Akasa Air has now increased the number of examiners in its rolls to seven and is releasing trainee pilots for active flying duties, there is still unease.

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Akasa Air is paying all such trainee pilots full salary. It also has a mentor programme for guidance and is updating them about course completion. However there is concern among Akasa Air pilots as their colleagues in other airlines have already begun clocking hours while they sit idle.

Yet despite the problems there is optimism. “It is just a hiccup and I am sure we will overcome it,” a pilot remarked. 

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