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Akasa Air Weighs UDAN Entry as Its Fleet Keeps Growing on ScheduleBusiness
2 hours ago· 3

Akasa Air Weighs UDAN Entry as Its Fleet Keeps Growing on Schedule

Akasa Air is preparing to join the government's regional air connectivity scheme 'UDAN' and will decide after studying all possible routes. The airline is targeting 30 percent capacity growth in the current financial year.

Amit PatelAmit PatelBusiness Correspondent 3 min read For AI
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Budget carrier Akasa Air is now looking to spread its wings to smaller towns across the country, and is seriously considering launching flights under the government's regional air connectivity scheme, 'UDAN'. According to the airline's CEO Vinay Dube, new aircraft are being added to the fleet steadily and on schedule, which is keeping the pace of expansion strong. Next month, Akasa Air will complete four years of commercial flight operations, and it is using this moment to work on a strategy to grow its network even further.

On the fleet front, the airline has already taken delivery of 9 new Boeing 737 MAX aircraft so far this year. Akasa Air has placed orders for a total of 226 aircraft, and the remaining 186 are expected to join the fleet by the end of 2032. It is this steady flow of deliveries that is giving the company the confidence to open new routes and step into schemes like UDAN.

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Targeting 30 percent capacity growth this financial year

Akasa Air has set a target of increasing its capacity by 30 percent in the current financial year. Beyond that, the company plans to grow capacity in the range of 30 to 40 percent every year over the next four to five years, meaning this pace of expansion is set to continue for a long time. Vinay Dube made it clear that the company is preparing to become part of the 'UDAN' scheme, but a final decision on it will be taken only after carefully studying all the possible routes.

Currently serving 28 domestic and 7 international cities

It is worth noting that on July 4, the central government introduced a revised version of the 'UDAN' scheme, short for 'Ude Desh ka Aam Nagrik'. The aim of the scheme is to give ordinary people affordable air travel and to put those cities on the aviation map that so far had either no service or very limited service. Launched in October 2016, the scheme has so far seen flights begin on 669 routes. At present, Akasa Air operates flights to 28 domestic and 7 international destinations, and joining UDAN could take its network deeper into smaller towns.

Sticking to a single aircraft type and single-class model for now

Asked about joining the ATF price stabilisation fund and the emergency credit guarantee scheme, Vinay Dube said the company is studying the terms of both initiatives before taking any final call. On strategy, he acknowledged that no company can stay fixed on a single approach forever. However, he also clarified that for now Akasa Air will continue with a single aircraft type and a single-class model. "We have a strategy and a direction, but it has to be reassessed every year in line with the industry's changing conditions. So far, a single aircraft type and a single-class model has been suitable for us," Dube said.

Boeing delivering aircraft on schedule

On aircraft deliveries, Vinay Dube expressed confidence that Boeing is handing over planes as per schedule. "In the last 12 months we have received a number of aircraft, and in the coming period even more aircraft will be delivered. The planes are arriving continuously and at a steady pace, in line with the schedule," he said. However, he also pointed out that the airline does not publicly issue a forecast of the number of aircraft it expects to receive in any given period. Dube added that the global aviation industry is currently grappling with supply chain disruptions and engine-related problems, which are causing delays in aircraft supply.

Over 850 pilots and more than 5,000 employees

In terms of scale, Akasa Air currently employs more than 5,000 people, including over 850 pilots. Most significantly, the loss-making airline recorded a profit at the pre-tax earnings, or EBITDA, level during the period from September 2025 to March 2026. This figure shows that despite rapidly rising costs, the company has managed to steer its business towards profitability.

What this means for you

  • For flyers: If Akasa Air joins the UDAN scheme, it could mean more affordable flight options from smaller and underserved cities.
  • Jobs and network: With 226 aircraft on order and a 30 percent capacity growth target, both the number of flights and job opportunities are likely to rise in the coming years.

Questions & Answers

Which government scheme is Akasa Air considering joining?
Akasa Air is considering launching services under the government's regional air connectivity scheme, 'UDAN'. The company will take a decision after studying all the routes.
How many new aircraft has Akasa Air taken this year?
The company has so far taken delivery of 9 new Boeing 737 MAX aircraft this year.
How many aircraft has Akasa Air ordered in total?
Akasa Air has ordered a total of 226 aircraft, of which the remaining 186 are expected to join the fleet by the end of 2032.
What is the company's capacity growth target?
The company aims to grow capacity by 30 percent this financial year, with plans to grow in the range of 30 to 40 percent every year over the next 4 to 5 years.
How many cities does Akasa Air currently serve?
At present, Akasa Air operates flights to 28 domestic and 7 international destinations.
Has the loss-making Akasa Air made any profit?
Yes, the company recorded a profit at the pre-tax earnings, or EBITDA, level during the period from September 2025 to March 2026.
How many employees does Akasa Air have?
The company employs more than 5,000 people, including over 850 pilots.
Amit Patel
About the authorAmit PatelBusiness Correspondent Delhi
ExpertiseBusiness News, Financial Markets, Stock Market Analysis, Corporate Affairs, Startups, Entrepreneurship, Economic Trends, Technology Business, Investments, Global Economy

Amit Patel is a Business Correspondent covering global markets, finance, startups, technology, and economic trends. He delivers timely news, market analysis, and insights into the businesses and industries shaping the modern economy.

Amit Patel is a Business Correspondent covering global markets, finance, entrepreneurship, technology, and economic developments. He reports on breaking business news, corporate strategies, stock market trends, startup ecosystems, and industry innovations that shape the global economy. With a focus on accuracy, clarity, and in-depth analysis, Amit helps readers understand complex business topics and their real-world impact. His coverage spans financial markets, multinational corporations, emerging industries, economic policy, investment trends, and digital transformation. Through data-driven reporting and insightful analysis, Amit delivers timely business news and expert perspectives for professionals, investors, entrepreneurs, and general readers alike.

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#Business#AkasaAir#UDANScheme#VinayDube#Boeing737MAX#RegionalAirConnectivity#AirlineExpansion#DomesticFlights

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