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SNV Aviation Pvt Ltd gets NOC from MoCA to operate ‘Akasa Air’ by 2022

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Rakesh Jhunjhunjwala-backed Akasa Air gets govt approvalOn October 11, 2021, the Ministry of Civil Aviation (MoCA) gave NOC (No Objection Certificate) to SNV Aviation Pvt Ltd to operate commercial flights across India under the brand name ‘Akasa Air’ from summer 2022.

  • This NOC will be followed by a security background check after which the airline will apply for AoP (air operator permit) from the Directorate General of Civil Aviation (DGCA).
  • It should be noted that this proposed airline is backed by Rakesh Jhunjhunwala, the Big Bull or Warren Buffett of India; and former Jet Airways CEO (Chief Executive Officer) Vinay Dube.
  • Rakesh Jhunjhunwala has invested Rs 247.50 crore in the airline.

Key Points:

  1. Akasa Air will have Vinay Dube as the CEO while Rakesh Jhunjhunwala will be represented by ex-IndiGo boss Aditya Ghosh in the proposed airline’s board.
  • This troika is expected to be the co-founders of Akasa.
  • Among other management members, Ankur Goel, former head of IndiGo’s treasury and investor relations will be its Chief Financial Officer (CFO) and Neelu Khatri is named as head of corporate affairs.

ii.As per SNV Aviation, it will be Ultra Low Cost Carrier (ULCC) which will be India’s most dependable, affordable and greenest airline.

iii.The airline is likely to place an order for about 100 Boeing 737 Max along with Airbus’ best selling A320 neo family of planes.

What is ULCC?

It operates with a low-cost business model and has both lower unit costs and revenues compared to low-cost carriers (LCCs) and full-service carriers (FSCs).

  • ULCCs often opt for unbundling of fares, making tickets cheaper than those of LCCs.
  • Any extras such as baggage, selecting one’s seat or food are subject to a charge.

Recent Related News:

DGCA and European Union Aviation Safety Agency (EASA) signed an agreement to work on an arrangement through which they will set common safety and environmental protection standards.

About Ministry of Civil Aviation (MoCA):

Union Minister– Jyotiraditya Scindia (Constituency– Madhya Pradesh)
Minister of State (MoS)– General Vijay Kumar Singh (Retd.) (Constituency- Ghaziabad (Uttar Pradesh)