Akasa Air has more than tripled its borrowing limit to ₹3,950 crore from ₹1,200 crore as the fast-growing airline prepares to finance fleet expansion, strengthen operations and access a government-backed credit support programme for the aviation sector. The revised borrowing ceiling was approved by shareholders of SNV Aviation, the airline's holding company, during a special meeting in May.
The airline said the increased financial flexibility is needed to support rising working capital requirements as it expands its network and takes delivery of new aircraft. Akasa, currently India's third-largest airline with a domestic market share of about 5.8%, is receiving at least one aircraft every month and is awaiting deliveries from its large order book of 226 Boeing aircraft. The additional funding could be raised through sale-and-leaseback transactions, credit-backed guarantees, invoice discounting and other financing mechanisms.
The move also comes as the government prepares to extend a ₹5,000-crore credit support package for airlines under the Emergency Credit Line Guarantee Scheme (ECLGS), aimed at helping carriers cope with high fuel costs and operational disruptions. "Considering the growing operations and resultant increase in the financial requirement of the company," Akasa sought approval for the higher borrowing limit, according to regulatory filings. Industry analysts said the airline's funding needs are being driven primarily by its aggressive expansion strategy and fleet growth as it seeks to strengthen its position in India's rapidly growing aviation market.
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