The big bull of the Indian stock market, Rakesh Jhunjhunwala, is soon going to launch a new airline company. According to media reports, he can invest $35 million in the new airline venture. Reports suggest that he might be inducting 70 aircraft into the airline company in the next 4 years. According to Forbes, the net worth of Jhunjhunwala is $4.6 billion.
According to reports, the intention behind the new airline is to provide air travel to more and more people in India. Jhunjhunwala will get a 40% stake in the company for an investment of $35 million. In an interview with Bloomberg, he said that we expect a No-Objection Certificate (NOC) from the Ministry of civil aviation in the next 15 days.
Jhunjhunwala has stakes in SpiceJet and Jet Airways
Reports say the name of the new airline company will be Akasa Air. Former senior executives of Delta Airlines will also join the new airline venture. Rakesh Jhunjhunwala said that the capacity of the plane to be included in the airline’s fleet can be up to 180 passengers. Jhunjhunwala holds 1-1% stake in SpiceJet and grounded airline company Jet Airways.
Demand will rise in the post-pandemic future
The condition of the aviation industry is already dire due to the Corona pandemic. There is also the possibility of a third wave of the corona. On the other hand, Rakesh Jhunjhunwala expects demand in the aviation industry to increase in the coming days, despite the worsening situation due to the pandemic. He says that the growth in the Indian market will continue and soon inflation will also come under control.
The aviation sector is in bad shape
Even before the pandemic, the aviation sector was going through an economic crisis. For instance, Kingfisher once became the second-largest airline in the country, but in 2012 the company had to shut down its business. Similarly, Jet Airways is also grounded since 2019, which is now preparing to take off again. Vistara and Indigo, a joint venture company of Tata Group and Singapore Airline Limited, are also in financial trouble due to the Corona crisis.