Akasa Air plans Southeast Asian expansion as Boeing problem eases

Akasa Air is gearing up for a major expansion this fiscal year, after a year of muted growth, buying planes and expanding flight operations to new regions. The low-cost carrier currently contributes 5% to India’s domestic traffic.The airline plans to launch international flights to one of the most sought-after regions for Indian travellers, southeast Asia.However, having only Boeing planes in its fleet, the group has faced challenges to expand operations as the manufacturer has been going through a production slump.Akasa chief commercial officer Praveen Iyer told ET, "The constraints seem to have been addressed to a large extent. Boeing had a peculiar issue and that's resolved, which is good news."“The good news is the worst is behind the supply,” Iyer added.He further added that they will be back on track for more deliveries this year, “we are happy with how the deliveries are scheduled for the rest of the year.”In the upcoming months, Akasa is aiming to increase its available seat kilometres, a key measure of airline capacity, by 30–40%.The Boeing problemAkasa had initially ordered 72 Boeing 737 Max aircraft in 2022 and later added four more to that order. In January this year, it placed an additional order for 150 aircraft of the same type.However, deliveries were delayed after Boeing faced intensified scrutiny from regulators and airlines following a mid-air incident in January involving a door plug detachment.As the production issues are gradually resolving, Akasa now plans to ramp up its international presence.“We have been consistently adding capacity on the international markets. Over the next several months you will see us making some announcements about addition of flights to Far East destinations,” Iyer said.He also highlighted that the upcoming Noida and Navi Mumbai airports will be game-changers for international connectivity from India’s busiest aviation hubs.