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Akasa Air and AirBorneo push expansion despite jet fuel strain
Akasa Air plans a 30.0% rise in passenger capacity for the fiscal year ending March 2027, while seeking 10.5 billion rupees through equity and debt.
India’s Akasa Air and Malaysia’s AirBorneo are moving ahead with expansion plans even as soaring jet fuel prices and disruption tied to the Middle East conflict pressure the aviation industry, according to SCMP Economy.
Akasa Air, described as India’s youngest airline, said it is seeking to raise 10.5 billion rupees, or about US$110 million, through a mix of equity and debt, including loans from state run banks, to fund its growth. The airline is targeting a 30.0% increase in passenger carrying capacity in the financial year ending March 2027, and its network focuses mainly on Indian cities plus destinations in the Middle East and Southeast Asia.
Malaysia’s state owned AirBorneo launched its first international service between Singapore and Kuching on Wednesday, and it said it aims to expand its fleet and regional network across Southeast Asia. SCMP Economy reports analysts interpret the announcements as smaller carriers finding room to grow as larger airlines face capacity constraints.
An OAG executive cited by SCMP Economy said the idea that the Middle East crisis is simply bad for Asian aviation is only part of the picture, and that smaller carriers are reading a more nuanced outlook. The outlet adds that low cost and regional carriers appear to be realigning strategy, focusing on growth in Asia rather than long distance routes to the US and Europe.