Akasa Air Expands to Top Asian Destinations, Heats Up Competition with IndiGo and Air India

Akasa Air, a budget airline based in Mumbai, is planning to expand its routes to popular tourist spots in Southeast Asia and the Indian subcontinent. The airline aims to start flights to Kathmandu, Nepal, and Dhaka, Bangladesh, and is also considering destinations like Thailand, Vietnam, Malaysia, and Indonesia, according to Praveen Iyer, chief commercial officer at Akasa’s parent company, SNV Aviation Pvt.

Iyer noted that the growing love for travel among Indians is driving this expansion. With strong outbound travel from India starting in October, Southeast Asian destinations are becoming increasingly popular.

Akasa Air, which began operations two years ago, has quickly added five international routes this year, reflecting the high demand for air travel as Indians become wealthier and visa restrictions ease. The airline faces increasing competition as Air India and Vistara merge under Tata Group, and market leader IndiGo expands its long-haul international routes. Additionally, several international airlines, such as Etihad Airways and Malaysia Airlines, are adding more flights to Indian cities.

In January, Akasa Air ordered 150 Boeing 737 Max jets, bringing its total order to 226 jets to be delivered over the next eight years. The airline plans to use these narrowbody jets for short-haul international flights, up to six hours. Akasa started its international operations in March with flights from Mumbai to Doha and has since added more Gulf destinations, including Abu Dhabi and Jeddah.

Unique Offerings

Akasa Air has captured a 4.7% market share in India this year, despite the competitive landscape dominated by IndiGo (61%) and Air India (14.2%). With a fleet of 24 jets flying 49 routes, Akasa Air has introduced niche offerings, such as allowing pets on board, carrying 3,700 pets since November 2022.

The airline, which is privately held and well-capitalized, does not plan to raise additional funds at this time. As India’s aviation industry consolidates, Akasa Air’s larger rivals are introducing new products to attract customers. Under Tata’s ownership, Air India is merging with Vistara, and its low-cost unit, Air India Express, is combining with AIX Connect. IndiGo is also planning to introduce a new premium cabin soon.

Iyer acknowledges the competition from the two major players, Tata Group and IndiGo, but emphasizes the importance of building Akasa Air’s unique network.