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Akasa Air considers up to 20% budget reduction for 2024-25

 

Akasa Air, set to initiate international services this month, is opting for budget reductions in the upcoming fiscal year starting April as part of its cost-control strategy, sources revealed.

The airline, operational since August 7, 2022, with a fleet of over 20 Boeing 737 Max aircraft, plans to cut its 2024-25 budget by up to 20% compared to the current financial year. While addressing inquiries about the potential 20% budget cut and a reported 15% reduction in salary variables for the next fiscal year, an Akasa Air spokesperson emphasised the company’s commitment to cost-conscious practices without compromising safety, customer experience, or long-term business health.

The spokesperson asserted that cost-consciousness does not extend to employee salaries, maintaining a commitment to providing a leading compensation package. Additional details about the specific budget-cutting measures were not immediately available. The spokesperson reassured that the airline remains well-funded, emphasising that Akasa Air generated cash from its first day of operations, ensuring the security of initial investments by investors. Operated by SNV Aviation Pvt Ltd, the airline faced challenges last year with a sudden pilot exit leading to some flight cancellations.

Akasa Air is scheduled to launch international services, beginning with its first flight to Doha from Mumbai on March 28. In January, the airline ordered 150 Boeing 737 Max planes, following its initial order of 72 Boeing 737 Max aircraft in 2021, and an additional order of 4 Boeing 737 Max 8 aircraft in June 2023.

Source: PTI

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