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Rakesh Jhunjhunwala-Backed Akasa Airlines Gets Government Clearance

The Ministry of Civil Aviation has issued a no-objection certificate to Akasa Airlines.

<div class="paragraphs"><p>Rakesh Jhunjhunwala. (Source: Bloomberg)</p></div>
Rakesh Jhunjhunwala. (Source: Bloomberg)

Billionaire investor Rakesh Jhunjhunwala’s aviation ambitions received a boost with the government giving clearance to the low-cost carrier backed by him.

Akasa Airlines, owned by SNV Aviation Pvt., said in a statement on Monday it has received the no-objection certificate from the Ministry of Civil Aviation. The airline plans to start operations in India by the summer of 2022 and will be run by former Jet Airways Chief Executive Officer Vinay Dube.

“We’ll continue to work with the regulatory authorities on all additional compliances required to successfully launch Akasa Air,” Dube was quoted as saying in the statement.

Jhunjhunwala had said in an interview with Bloomberg TV that he plans to invest $35 million to acquire a 40% stake in the airline. “We aim to acquire 70 aircraft over next four years and are targeting aircraft equipped to accommodate approximately 180 passengers,” he had said.