Home » AIRLINE NEWS » Akasa Air Struggles to Keep Pace with India’s Competitive Aviation Market as Boeing Delivery Delays Disrupt Fleet Growth and Ground Pilots: You Need to Know
Thursday, March 20, 2025
Akasa Air (QP), India’s newest budget carrier, is facing a growing crisis as delays in Boeing aircraft deliveries force the airline to contend with a backlog of orders, grounded pilots, and mounting frustrations within its workforce. While the airline continues to publicly support Boeing, internal discussions reveal a sense of urgency and dissatisfaction over the ongoing setbacks that are stalling its rapid expansion.
The delays, stemming from regulatory challenges, a mid-air panel failure, and a lengthy workers’ strike at Boeing, have significantly disrupted Akasa’s fleet growth plans. As a result, the airline is struggling to manage its operations effectively, unable to meet its ambitious goals for fleet expansion, and leaving hundreds of pilots sidelined.
Founded just three years ago, Akasa Air has quickly positioned itself as a competitor in India’s highly competitive aviation landscape. Operating with a fleet of 27 aircraft, the airline had hoped to grow rapidly with an order for 226 Boeing 737 MAX jets. However, the continued production delays have made it impossible for the airline to meet its growth targets, forcing Akasa to adjust its plans.
Despite frequent public reassurances from Boeing about its efforts to resolve the production issues, Akasa executives have privately expressed their growing concerns. In internal meetings, airline leadership referred to Boeing as a major source of stress, highlighting the ongoing impact the delays are having on its operations and expansion strategy.
The ripple effect of these delays has been felt across the aviation industry. Other carriers operating Boeing jets have faced similar challenges, though few have been as outspoken as Akasa. Many airline leaders have opted for a more diplomatic approach, avoiding direct criticism of the aircraft manufacturer.
Akasa’s struggles are compounded by the dominance of larger players like Air India and IndiGo, which control the lion’s share of the Indian aviation market. With a relatively small market share of just 4.7%, Akasa faces heightened risks in its quest for expansion, particularly as it tries to carve out a place in a market heavily controlled by industry giants.
In 2023, Akasa saw a fourfold increase in revenue, reaching $356 million, but its net losses grew significantly, rising from $86 million to $194 million. These figures reflect the tension between its aggressive fleet expansion strategy and the delays in receiving the aircraft it needs to grow.
The airline has also been hit by staffing challenges. Despite a workforce of 775 pilots, only 60% are currently active, with roughly 310 pilots grounded as they wait for aircraft. While Akasa aims to get most of its pilots back in the air by 2025, it remains unclear how the airline plans to meet this goal.
The grounded pilots are feeling the financial and professional strain of inactivity, especially as they face the prospect of lost income and stagnated careers. The airline’s training bond requirement, which demands pilots repay $41,700 if they resign, adds to the financial burden. With salaries ranging from $35,000 to $111,000 annually, pilots are increasingly frustrated by their lack of flying hours, impacting both morale and retention.
In response to the situation, Akasa has suggested that pilots consider switching to roles in IT and maintenance within the company, though these positions do not come with additional compensation. This move has sparked further dissatisfaction among the airline’s workforce.
To support its ongoing expansion, Akasa is seeking fresh investment from prominent funding sources. The airline plans to double its fleet over the next 16 to 20 months, targeting a fleet size of 54 aircraft by late 2026. However, the airline’s original goal of operating 72 aircraft by March 2027 has been delayed due to Boeing’s ongoing production issues.
Despite these setbacks, Akasa remains resolute in its long-term strategy for growth in India’s dynamic aviation sector. The airline continues to urge Boeing to prioritize addressing production inefficiencies to ensure timely aircraft deliveries and minimize further disruption to its growth trajectory.