Monday, July 12, 2021

Rakesh Jhunjhunwala Mulls Multi-Crore Investment In New Airline; Details Inside

New Delhi: Rakesh Jhunjhunwala is planning to go for a big-money investment in the aviation sector. Jhunjhunwala is mulling to make multi-crore investment in new, low-fare airline. Preliminary talks have been completed, and Jhunjhunwala can invest to the tune of around Rs 260 crore, according to a report by PressWire18.

The proposed airline’s name could be ‘Akash’. The meetings have been held between Jhunjhunwala and a team led by former Jet Airways CEO Vinay Dubey. Talks are also held with a foreign investor, the PressWire18 report says.

If talks are materialised, then Jhunjhunwala can invest USD 35 Million in the airline and will hold around 40 per cent equity of the company, the report says.

Meanwhile, the new airline has made an application for a no objection certificate with the Ministry of Civil Aviation.

The new airline is being built by Head of Revenue Management at GoAir Arvind Srinivasan and former Vice President of Jet and former COO of GoAir Pravin Iyer, according to the report.

The team is eyeing the civil aviation ministry’s NOC first, and then raising funds and making strong business plan, as per the report.

If everything goes according to the plan, then the airline can be launched in the middle of next year.

Jhunjhunwala in past had shown keen interest in the airline industry. The veteran investor had more than 1 per cent stake in Spicejet. He also held about one per cent stake in the Jet Airways, the report says.


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