Rakesh Jhunjhunwala’s demise unlikely to impact Akasa Air's business

Rakesh Jhunjhunwala's family owns 45% stake in Akasa Air but the billionaire himself was not supposed to be involved in the day-to-day operations of the airline

ET Now Digital

Updated Aug 16, 2022, 07:00 IST

Jhunjhunwala demise unlikely to impact ops of Akasa Air

(Image source: @BLRairport) Maiden Akasa Air Bengaluru-Kochi flight lands at Kempegowda International Airport on August 12

Photo : Twitter

Rakesh Jhunjhunwala’s demise will have no impact on the business of the newly-launched Akasa Air. The airline started operations barely a week before the death of its celebrated co-founderJhunjhunwala.

The billionaire was not supposed to be involved in the day-to-day operations of the airline, Bergis Desai, former managing partner of law firm J Sagar Associates and an investor in Akasa Air, told Economic Times. He further added that the shareholder agreement has been structured in a way that will ensure the management by the estate, and every commitment that has been made will be honoured.

The late ace trader was the biggest investor in the budget airline in which his family owned 45% stake through trusts named after his children Nishtha, Aryaman and Aryavir.

The billionaire investor breathed his last on Sunday morning after battling a series of health complications in the past few years. Despite his ill-health, Jhunjhunwala was present for Akasa AIr’s inaugural flight from Mumbai to Ahmedabad. He said that the budget airline needs to expand operations and needs to be frugal without comprising on customer comfort or quality of services.

The airline has the managerial heft to eke out a meaningful share in India’s growing, but increasingly crowded aviation sector.

In the high growth potential and increasingly competitive Indian civil aviation space, the trajectory of Akasa Air, which started off its first flight on August 7 on the Mumbai-Ahmedabad route, will be closely watched.

Akasa Air CEO and investor Vinay Dube in a recent statement said that the airline will honour the legacy, values and beliefs of the ace investor.

"Jhunjhunwala had an invincible spirit, was deeply passionate about everything Indian and cared greatly for the well-being of our employees and customers. Akasa Air will honour Jhunjhunwala's legacy, values and belief in us by striving to run a great airline," Dube said in a statement.

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