Stock market investor Rakesh Jhunjhunwala-backed aviation venture SNV Aviation, which is planning an airline under the Akasa brand, has received a no-objection certificate from the Ministry of Civil Aviation.
The airline, which is planning to operate as a low-cost carrier or an ultra low-cost carrier, expects to launch services by the summer of next year.
The airline is being launched by Jhunjhunwala, who will hold a 40 per cent stake in the company. Jhunjhunwala has onboarded aviation industry veterans such as former Jet Airways CEO Vinay Dube and ex-IndiGo president Aditya Ghosh to run the airline.
What is the ULCC model?
In the ULCC (ultra low cost carriers) airline business model, the company focuses on keeping operating costs even lower than typical budget airlines like IndiGo and SpiceJet.
In the low-cost model, airlines unbundle certain amenities that are usually associated with the full-service airline experience — like seat selection, food and beverages, etc.
In the ultra low-cost model, there is an even further unbundling of services like checked-in baggage, cabin baggage, etc.