Akasa Air struggles with aircraft delivery delays

Akasa Air is facing significant challenges due to delays in aircraft deliveries from Boeing and Airbus. These delays stem from ongoing geopolitical tensions that have affected supply chains. Many airlines are struggling, and Akasa Air is particularly impacted, with operational issues arising from the lack of available aircraft. Currently, Akasa operates 27 planes but has ordered 226 Boeing 737 MAX aircraft. However, delivery has been postponed following a mid-air incident that led to heightened regulatory scrutiny of Boeing. A workers' strike at Boeing further complicated the situation and slowed production. Despite these setbacks, Akasa's executives have publicly maintained confidence in Boeing. In a recent meeting, however, they admitted the strain from the delays. Priya Mehra, Akasa’s chief of strategic acquisitions, described Boeing's issues as the "elephant in the room." CEO Vinay Dube also expressed dissatisfaction, noting the airline's shortage of operational planes. As a result, many Akasa pilots are currently grounded. Out of 775 pilots, only 465 are flying, leaving many idle. The airline hopes that most of these pilots will be back in action by the end of 2025, but specifics on how this will happen have not been clearly communicated. Some pilots are frustrated by their situation, as being grounded affects their income and career prospects. Akasa pilots earn between $35,000 to $111,000 annually but face a hefty training bond if they choose to leave. Meanwhile, the airline's employee costs have surged, reaching $90 million last year. In an effort to ease the strain, Akasa has suggested that pilots develop skills in other areas, like IT and maintenance, though this would not come with additional pay.