The upcoming ultra-low-cost carrier Akasa Air backed by Indian investor Rakesh Jhunjhunwala is reportedly in negotiations with Boeing to purchase a hundred 737 MAX aircraft.
“The company, in its discussion with regulators, has said it has made significant progress in negotiations with Boeing to acquire the 737 MAX and intends to start operation by early 2022,” a source close to the matter told moneycontrol. “For that purpose, the government needs to recertify the aircraft.”
Akasa’s biggest investor Jhunjhunwala told Bloomberg that he had initially considered investing $35 million into the airline venture with the ambition of having a 70-aircraft fleet.
The Boeing 737 MAX reportedly costs $125 million per unit at list price, with associated discounts up to 50% in a bulk order.
“We always seek opportunities and talk with current and potential customers about how we can best support their fleet and operational needs,” Boeing told Business Standard.
Vinay Dube, the former chief executive of Jet Airways, and Aditya Ghosh, the former president of IndiGo, are set to join Akasa’s executive board with the backing of Indian investor-tycoon Rakesh Jhunjhunwala.