Akasa Air to join UDAN scheme, expand capacity significantly
What's the story
Akasa Air, the new Indian airline, is gearing up to join the government's regional air connectivity scheme, UDAN. The announcement was made by CEO Vinay Dube. He said that the airline has been adding Boeing 737 MAX aircraft at a steady pace and plans to expand its capacity significantly in the coming years.
Growth strategy
Fleet expansion remains on track
Akasa Air has received nine new Boeing 737 MAX aircraft this year, taking its total order count to 226 planes. The airline plans to increase its capacity by 30% in the current fiscal year and expects a further 30-40% growth over the next four to five years. Despite industry-wide delivery challenges, Akasa Air's fleet expansion remains on track with a focus on a single aircraft type and class.
Scheme involvement
UDAN scheme modified version launched
Dube confirmed that Akasa Air plans to participate in the UDAN scheme and will conduct a sector-by-sector study. The modified version of the scheme was launched on July 4, with an aim to provide affordable air connectivity to unserved and underserved destinations. Since its launch in October 2016, the scheme has operationalized 669 routes connecting 95 airports, heliports, and water aerodromes.
Operational status
Study on ATF Price Stabilization Fund and ECLGS ongoing
Currently, Akasa Air connects 28 domestic and seven international cities. Dube said the airline is studying the terms and conditions of the ATF Price Stabilization Fund and ECLGS before making a decision. He also emphasized that their strategy isn't static, but for now, they will stick to a single aircraft type and class.
Industry adaptation
Boeing is meeting delivery timelines
Dube said Boeing is meeting delivery timelines and the aircraft are coming at a very predictable and steady pace. He also revealed that despite a previous slowdown in aircraft deliveries, Akasa Air chose to retain its entire employee base in 2024. The decision has paid off as the airline was EBITDA positive during the September 2025-March 2026 period.