Indian start-up carrier Akasa Air and Griffin Global Asset Management finalized a sale and leaseback agreement for five Boeing 737 MAX aircraft.
The deliveries are expected to start in June 2022.
Commenting on the alliance, Vinay Dube Founder, managing director and CEO at Akasa Air said: “We are pleased to have Griffin as our partners in growth as we embark on our aviation journey.”
Akasa Air, an ultra-low-cost carrier backed by Indian billionaire Rakesh Jhunjhunwala, plans to start operations in July 2022.
The start-up company will operate a fleet of Boeing 737 MAX, having announced a hefty order for 72 of the aircraft at the Dubai Airshow in November 2021. The order comprises the 737 MAX 8 and the higher capacity 737 MAX 8200 aircraft. The airline expects to reach its fleet size of 72 aircraft within five years.
To power the fleet of Boeing 737 MAX aircraft, Akasa has picked CFM International LEAP-1B engines. The deal also includes spare engines and a long-term services agreement valued at $4.5 billion at list price.
Once in the skies, Akasa Air will compete with India’s well-established LCCs such as IndiGo, SpiceJet, and GoAir.