Akasa Air to trim its budget for 2024-25 as part of cost control measures | Company News – Business Standard

Akasa Air, which is all set to start international services this month, has decided to trim its budget for the next financial year starting April as part of cost control measures, according to two sources.

When contacted, an airline spokesperson said it is always looking for prudent ways to control costs.

The carrier, which commenced commercial flights on August 7, 2022, operates more than 20 Boeing 737 Max aircraft.

The sources in the know told PTI on Monday that the airline has decided to reduce its budget for 2024-25 fiscal and the reduction could be up to 20 per cent compared to the current financial year.

“As a cost-conscious business, we are always looking for prudent ways to control our costs without sacrificing safety, our customers’ experience or the long-term health of the business. Cost consciousness does not apply to employee salaries,” an Akasa Air spokesperson told PTI.

“We take great pride in offering a market leading compensation package to each work group at the airline. FY 2024-25 will be no exception in this regard,” the spokesperson said in a statement.

The comments came in response to queries about the airline trimming its budget by 20 per cent as well as cutting salary variables up to 15 per cent for the next financial year.

Further details about the airline’s plans to trim the budget could not be immediately ascertained.

The spokesperson also said the airline remains well funded.

“The airline that our team has created has generated cash from its first day of operations as a result of which the initial investment by our investors continues to remain secure in our bank account,” the spokesperson said.

Akasa Air is operated by SNV Aviation Pvt Ltd.

SNV Aviation reported a total comprehensive loss of Rs 744.131 crore in the year ended March 31, 2023, as per financial data accessed through business intelligence platform Tofler.

Last year, the airline faced turbulence due to sudden exit of pilots that had resulted in some flight cancellations.

Akasa Air will launch international services with its first flight to Doha from Mumbai on March 28. It had a domestic market share of 4.5 per cent in January.

In January, the airline placed an order for 150 Boeing 737 Max planes. In 2021, Akasa Air placed its initial order of 72 Boeing 737 Max aircraft, and it was followed up with an order of 4 Boeing 737 Max 8 aircraft in June 2023.

First Published: Mar 04 2024 | 7:07 PM IST