India: proposed LCC could have major ramifications for India market

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The proposed entry of a new LCC to the Indian market will add another intriguing dimension to what is shaping up to be an extremely competitive airline sector in the post-pandemic recovery phase.

The airline - to be called Akasa - has started on the path to regulatory approval, and has enough prominent backing that its ambitious plans cannot be taken lightly.

Depending on the pace of various regulatory processes, Akasa could launch in the first half of 2022, and plans to ramp up quickly. There is obviously still a lot of investment drawn to the massive potential of the Indian market, but there is also potential for growth to occur too rapidly for the financial health of the industry.

One interesting detail is that Akasa is believed to be talking to Boeing about a major order for Boeing 737 MAX aircraft - with media reports indicating an order in the range of 70-100 aircraft. If this transpires, it would be an important inroad for Boeing in a market where Airbus dominates narrowbody fleets and order backlogs.

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