Akasa Air to cut budget as part of cost control measure

Akasa Air, set to inaugurate its international services this month, has announced plans to curtail its budget for the upcoming fiscal year starting April as part of strategic cost-control measures, sources reveal.

Despite repeated attempts for clarification, the airline spokesperson maintained Akasa Air’s commitment to judicious cost management, affirming that it continuously seeks avenues for financial prudence while upholding safety standards and passenger satisfaction.

Since its commercial debut on August 7, 2022, Akasa Air has operated a fleet of over 20 Boeing 737 Max aircraft. Sources privy to the matter disclosed that the airline intends to slash its budget for the 2024-25 fiscal year by potentially up to 20 percent compared to the current financial period.

In response to inquiries regarding the speculated 20 per cent budget reduction and the proposed cut of salary variables by up to 15 per cent for the next fiscal year, the spokesperson assured that Akasa Air remains committed to offeringcompetitive compensation packages to its workforce without compromising on quality.

While specific details regarding the budget reduction strategy remain undisclosed, the spokesperson underscored the airline’s robust financial position, emphasizing that operational cash flow has been positive since its inception, ensuring the security of initial investments.

Akasa Air, operated by SNV Aviation Pvt Ltd, faced operational challenges last year, notably attributed to pilot attrition leading to flight disruptions. Despite such hurdles, the airline is set to commence its international operations with the inaugural Mumbai-Doha flight scheduled for March 28.