When is Akasa Air expected to become profitable?

Akasa Air is not expected to achieve Ebitda positivity in the near term.

What was Rakesh Jhunjhunwala's view on low-cost airlines in India?

Rakesh Jhunjhunwala believed that the low-cost airline model was the correct approach for India.

What is Akasa Air's valuation goal?

Akasa Air aims to achieve a strong valuation, comparable to established airlines like IndiGo.

Home / Business and Economy / Jhunjhunwala's Last Bet: Akasa Air's Path to Profitability

Jhunjhunwala's Last Bet: Akasa Air's Path to Profitability

9 Dec

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Summary

Akasa Air is not projected to achieve Ebitda positivity soon.
Rakesh Jhunjhunwala saw low-cost airlines as the correct model for India.
Significant work remains for Akasa Air to reach a strong valuation.

Jhunjhunwala's Last Bet: Akasa Air's Path to Profitability

Akasa Air, a significant investment for the late Rakesh Jhunjhunwala, is currently facing a prolonged period before achieving positive Ebitda. This suggests that, for the airline's planned listing in the coming years, there is considerable effort needed to establish a robust valuation.

Jhunjhunwala had previously expressed strong conviction in the low-cost airline model's suitability for the Indian market. He reportedly shared this view during IndiGo's initial public offering roadshows, recognizing the potential of budget air travel.

However, achieving a valuation similar to that of IndiGo will require Akasa Air to overcome substantial operational and financial hurdles. The airline must continue to develop its strategy to ensure long-term sustainability and market competitiveness.