India’s Akasa Air is grappling with major setbacks as Boeing’s (NYSE:BA) delayed 737 MAX deliveries disrupt operations, leaving hundreds of pilots idle. Despite public confidence in Boeing, Akasa executives have expressed frustration internally, blaming a workers' strike and production issues for slowing expansion.
Akasa, backed by billionaire investors, has 27 aircraft in operation but has ordered 226 Boeing jets. The airline's leadership, including CEO Vinay Dube, acknowledges the growing strain, with 310 of its 775 pilots grounded due to aircraft shortages. Employees are frustrated, losing flight incentives and career progression, while Akasa’s losses have widened to $194 million despite revenue quadrupling to $356 million last year.
In a private town hall, Akasa executives criticized Boeing for slowing growth. Co-founder Aditya Ghosh called Boeing a bottleneck, while strategic acquisitions chief Priya Mehra blamed sleepless nights on the manufacturer’s delays. Dube reportedly urged Boeing to focus on production rather than hosting industry events.
While Akasa expanded internationally and secured fresh investment from Azim Premji’s fund, it faces hurdles. The airline initially projected a fleet of 72 planes by March 2027 but now expects only 54 by late 2026. Meanwhile, pilots waiting for assignments were offered IT and engineering roles without additional pay, further fueling discontent.
As global airlines struggle with Boeing’s production setbacks, competitors like Air India acknowledge the prolonged aircraft shortage. However, as a smaller player in India’s rapidly growing aviation market, Akasa faces steeper challenges in maintaining growth and stability.
With mounting financial losses, pilot frustration, and uncertain fleet expansion, Akasa’s future hinges on Boeing’s ability to resolve production delays and meet delivery commitments.
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