India’s newest airline, Akasa Air, is grappling with delayed plane deliveries from Boeing Co. BA, leading to unrest among executives and idle pilots.
What Happened: Akasa Air, backed by the deceased billionaire investor Rakesh Jhunjhunwala, also known as the Warren Buffet of India, is among the most affected by Boeing’s global delivery delays. The Mumbai-based low-cost airline, in operation for three years, has 27 planes but is waiting on 226 Boeing 737 MAXs. Akasa’s executives have publicly expressed confidence in Boeing, but privately, they have acknowledged the operational stress they are under, according to a report by Reuters.
Boeing’s 737 program has faced regulatory scrutiny following a mid-air cabin panel blowout last year and a seven-week workers’ strike, causing delivery delays.
In a private town hall meeting in February, Priya Mehra, Akasa’s chief of strategic acquisitions, referred to Boeing as the “elephant in the room” causing “sleepless nights”. CEO Vinay Dube expressed frustration over the lack of aircraft, stating, “We just don’t have enough aircraft to fly.”
Boeing’s delivery delays have also affected other airlines globally, including U.S. budget carrier Southwest Airlines LUV, which was forced to cut jobs for the first time in its history.
Boeing did not immediately respond to Benzinga’s request for comments.
Why It Matters: The delivery delays by Boeing are not a standalone issue. In April, increased factory inspections by U.S. regulators and a slowdown on the assembly line near Seattle led to a significant decline in the production of Boeing’s 737 MAX jetliners.
Furthermore, the escalating trade war initiated by President Donald Trump could potentially tip the scales in favor of Boeing’s European competitor, Airbus SE. Boeing, already dealing with the repercussions of the 737 Max crisis, may encounter additional challenges due to rising costs. This situation could further exacerbate Boeing’s delivery challenges and impact its market share in the aviation industry.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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