BENGALURU- India’s youngest airline, Akasa Air (QP), is struggling to secure the United Arab Emirates (UAE) rights, affecting the airline’s plans expansion plans. The airline is rapidly establishing itself as a formidable player in the country’s aviation industry.
Backed by the late Rakesh Jhunjhunwala’s family, the airline has made significant strides in expanding its fleet, increasing market share, and setting ambitious goals for international expansion. The airline has its hubs in Bengaluru and Mumbai from where it operates most of its flights.
However, the airline’s expansion plans have hit a major roadblock. Akasa Air has raised concerns about fair competition in the industry.
Photo: Akasa AirAkasa Air’s Growth
Since its inception, Akasa Air has followed an aggressive expansion plan. With a fleet of 27 Boeing 737 Max aircraft and a 4.6% market share in CY2024, the airline has been steadily adding new destinations. Akasa’s CEO, Vinay Dube, has expressed confidence in the airline’s future, highlighting India’s economic growth as a key driver of the aviation sector.
The airline has further placed orders for 199 more aircraft. The new aircraft are expected to be delivered by 2032. This will ensure sustained growth. Despite supply-chain disruptions affecting Boeing’s delivery schedule, Akasa Air has remained optimistic. Dube stated that a delay in one or two aircraft does not alter its long-term vision.
Financially, the airline is also on a solid footing. While it has not disclosed a specific timeline for profitability, Dube has emphasized that Akasa Air is well-capitalized and will continue to operate with financial discipline.
Reports suggest that the airline has been in talks with investors, including the family offices of Azim Premji and Ranjan Pai, for a $120 million capital infusion, although no official confirmation has been made.
As part of its expansion, Akasa Air is looking to add 5-10 new destinations in the coming year. This includes a mix of domestic and international routes. However, its international ambitions have been met with resistance, particularly in securing traffic rights to the UAE, a key market for Indian carriers.
Photo: Utkarsh Thakkar (Vimanspotter) Akasa Air UAE Flight Rights
While Akasa is actively planning international expansion, the airline has been facing significant regulatory hurdles. The airline has expressed frustration about the same.
Despite its rapid growth, Akasa Air has encountered significant challenges in its bid to operate flights to the UAE, particularly Abu Dhabi. In a formal letter to the Ministry of Civil Aviation, the airline raised concerns over a lack of a level playing field, arguing that newer airlines like Akasa face unfair restrictions in route allocations.
The airline disclosed that, in anticipation of securing the UAE-Abu Dhabi route, it had to voluntarily surrender its flight rights to several other international destinations, including Hong Kong, Kenya, Egypt, Ethiopia, Bangladesh, and Nepal. However, despite repeated requests over the past year, it has not received approval to commence flights to Abu Dhabi.
A major point of contention for Akasa Air is the dominance of IndiGo and Air India in the UAE market. Both airlines operate multiple daily flights to major destinations, including Abu Dhabi, Dubai, Sharjah, and Ras Al Khaimah, leaving little room for new entrants. Akasa Air argues that this has created an unequal competitive environment. The airline believes that this makes it difficult for smaller players to establish a foothold in key international markets.
In its letter to the ministry, Akasa Air urged officials to reconsider the allocation and grant it the necessary traffic rights for the Winter 2024 or Summer 2025 schedules. If slots for Abu Dhabi remained unavailable, the airline requested alternative approvals for flights to Sharjah instead.
Akasa is committed to immediately utilizing any allocated rights to them. The airline wants to ensure that Indian travelers would have access to more affordable and convenient international travel options.
Photo: Photo: Siddh Dhuri | MumbaiPlanesGovernment Response
Akasa Air learned about a shocking fact during a consultative meeting with the Ministry of Civil Aviation on January 15, 2025. The government had reallocated Abu Dhabi flight slots to other emirates. Those rights were distributed to destinations such as Sharjah and Ras Al Khaimah.
The more frustrating news was that the government distributed these rights to other Indian airlines. Akasa Air questioned the legality and fairness of this decision. The airline further argued that new entrants should be given equal opportunities to compete.
A Civil Aviation Ministry official responded to Akasa Air’s concerns. The official stated that traffic rights are allocated as per the Memorandum of Understanding (MoU). The MoU was signed between India and the UAE in 2014. It specifies that out of the total of 50,000 seats, 2,500 seats can be utilized for destinations in the UAE. This applies to all UAE points except Dubai.
The official further stated that Akasa doesn’t have the aircraft. The ministry is being cautious in granting the rights to Akasa, ensuring they don’t remain unused later.
There should not be a situation where rights are allotted but no flights are launched. This would ultimately harm passengers who could have benefited from more options.
Official Statement
Photo: Siddh Dhuri | MumbaiPlanesBottom Line
Akasa Air remains optimistic about its future, with aggressive expansion plans, a growing fleet, and strong financial backing. However, the airline’s ability to compete internationally will depend on regulatory decisions. This will determine whether the airline can access key markets like the UAE.
While the airline has demonstrated strong growth potential and financial stability, route allocation policies continue to favor established players. Akasa Air’s struggle to secure UAE rights shows the challenges faced by new entrants in India’s aviation sector.
Akasa Air’s aggressive future expansion plans position it as a strong competitor in the Indian aviation space. If the situation continues, this will lead to Indian aviation dominated by the duopoly of the Tata Group Airlines and IndiGo. This will limit the number of affordable options for passengers in the future.
If the government does not intervene to ensure fair competition, newer airlines may find it increasingly difficult to expand internationally. The outcome of this will serve as a critical test of India’s aviation policies.
For now, Akasa is all set to launch flights to Abu Dhabi from Ahmedabad and Bengaluru. The daily flights from both these cities will take off starting from 1st March 2025. The airline already operates a daily flight to Abu Dhabi from Mumbai.
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The post Akasa Air Expansion Plans Hit Roadblock Over UAE Rights appeared first on Aviation A2Z.
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