India's Youngest Airline Seeks Funds As Iran War Drives Up Costs: Report
Akasa Air is seeking to raise 10.5 billion rupees through debt and equity to manage financial pressures caused by the Iran-U.S. conflict. The war has driven up jet fuel costs, impacting the operational viability of several Indian airlines.
Why it matters
The financial strain on airlines highlights the ripple effects of regional conflicts on the aviation industry and domestic economic stability.
Akasa Air is looking to raise 10.5 billion rupees ($110 million) through equity and debt, people familiar with the matter said, as India's youngest airline seeks funds to overcome challenges brought on by the Iran war.The airline has approached existing as well as two new investors to raise about 8 billion rupees through equity, said the people, who asked not to be identified as the discussions are private. It is also in talks with state-run banks for at least 2.5 billion rupees in debt, they said, under an India government credit line for carriers hit by the conflict.Akasa, which began operations in August 2022 and is owned by SNV Aviation Private, raised funds from investors in June last year based on market conditions that later shifted after the conflict between Iran and the US.
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