Akasa Air Struggles With 737 MAX Delays

Akasa Air, a newly launched carrier in India, has become the latest to publicly discuss its impact from ongoing delays in acquiring 737 MAX jets from Boeing.

In what is described as a growing crisis, Akasa Air is forced to ground pilots and adjust its growth targets due to an inability to acquire next-generation planes on time.

The company, which entered the industry only in the last couple of years, has attempted to capitalize on the increasing demand following the pandemic and the misfortunes of some other established airlines that call India home.

However, its ability to meet this demand and continue with its growth plans has been massively hindered as Boeing faces output rate caps on its 737 MAX, thus preventing it from meeting the previously arranged delivery timeframes put forward to airline customers.

Akasa Air is frustrated. This feeling has become more than apparent but is certainly not an isolated one. While the airline remains in close communication with Boeing over the delays, similar to its counterpart Air India, its hands are firmly tied behind its back.

As a result, it cannot do much to mitigate the inability to take delivery of jets such as brand-new 737 MAXs. Therefore, while communication is great, it doesn’t fix the problems, and the sense of urgency across the business has been increasing tenfold as its ability to expand is being pushed back, thus hindering its potential future in the industry.

Akasa Air is an example of an airline facing a different set of challenges that stem from the industry’s broader inability to deliver planes when required. Some airlines can retain older aircraft, which, while it may lead to losses, allows them to limit capacity loss.

However, in cases such as Akasa Air, which is attempting to start up, these delays have a catastrophic impact on its ability to grow, cement a route network, and firmly establish itself in a highly competitive industry that continues to be unforgiving even at the worst of times.

Akasa Air has some 200 planes on order but only a fleet of nearly 30 737 MAX jets; its growing expectations are huge, but its struggles are well documented and affecting its business.

Akasa Air Grounds Pilots

Driven by an inability to take delivery of new planes, staffing challenges have now resulted in harsh decisions being made.

Akasa Air has been forced to ground around 40% of its workforce. This includes pilots who would’ve been expected to fly on brand new MAX jets from Boeing but have not been able to because of a lack of new deliveries.

With careers and income, among other avenues, being affected, the carrier is aware of the impact the groundings of its workforce are having but knows its hands remain tied, and it is limited in its ability to react to these pilots.

This also remains complex in terms of these pilots returning to flying, given that Akasa Air is struggling to determine when new planes will be delivered.