Akasa Air to Join UDAN Scheme, Plans Significant Capacity Growth

New Delhi, Akasa Air plans to operate flights under the government's regional air connectivity scheme UDAN, according to CEO Vinay Dube, who also said that aircraft are joining its fleet at a very steady and predictable pace.

The carrier, which is set to complete four years of commercial flying next month, has taken delivery of nine new Boeing 737 MAX aircraft so far this year. It has placed orders for 226 planes and all the remaining 186 aircraft are expected to join the fleet by the end of 2032.

The airline aims to increase capacity by 30 per cent in this financial year, and the capacity growth would be in the range of 30-40 per cent in the next 4-5 years.

In an interview with PTI, Dube said the airline plans to be part of the UDAN scheme and would carry out a study on a sector-by-sector basis.

The modified version of UDAN (Ude Desh ka Aam Naagrik) scheme, which seeks to provide air connectivity to unserved and underserved destinations at affordable cost, was launched on July 4. Launched in October 2016, the scheme has so far helped operationalise 669 routes and connecting 95 airports, heliports and water aerodromes.

Currently, Akasa Air connects 28 domestic and 7 international cities.

On whether Akasa Air would be participating in the ATF Price Stabilisation Fund and the ECLGS (Emergency Credit Line Guarantee Scheme), Dube said the airline was studying the terms and conditions of both initiatives before taking a final decision.

While emphasising that one "cannot be static" about one's strategy, Dube, also the Founder of Akasa Air, said that for now, the airline would have a single aircraft type and a single class.

"We (airline) have a strategy and a direction but we have to re-evaluate it every year and we have to be willing to overturn our worldviews based on what are the dynamics of the industry ...

"So far, the answer for us has been single aircraft type and single class," Dube said.

According to him, Boeing is meeting the delivery timelines.

"If we've taken X deliveries in the last 12 months, it's only going to be X plus plus... they (aircraft) are coming... at a very predictable and steady pace," he said.

The airline does not provide a forecast about the number of aircraft that are to be delivered for a particular time frame.

Globally, the airline industry is grappling with supply chain and engine woes that are also resulting in delayed aircraft deliveries.

A few years back, there was a slowdown in the delivery of aircraft that had also resulted in Akasa Air having more number of staff compared to the aircraft in its fleet.

"We made the decision in 2024 that we would keep the entire employee base intact, despite us having an employee base, you know, in plans for larger than the actual deliveries that we got. And we are reaping the benefits today," Dube said.

Akasa Air has more than 5,000 staff, including over 850 pilots.

The loss-making airline was EBITDA positive during the September 2025 - March 2026 period. EBITDA refers to Earnings Before Interest, Taxes, Depreciation and Amortisation.