NEW DELHI: Akasa Air said that it is looking forward to availing the benefits of the government’s Emergency Credit Line Guarantee Scheme (ECLGS) amidst reports the airline is eyeing to raise Rs 1,050 crore through equity and debt to overcome challenges brought on by the US-Iran conflict.
“Akasa Air is a well capitalised airline with a clear long term growth strategy. This financial strength allows us to execute our growth plans with confidence and make decisions that best support our long term business objectives,” said an Akasa Air Spokesperson.
The spokesperson added, “We appreciate the Government of India for introducing the Emergency Credit Line Guarantee Scheme and the support it provides to the aviation sector. We look forward to availing the benefits of the scheme, as appropriate, to further strengthen our growth plans.”
According to a Bloomberg report citing sources, the airline has approached existing as well as two new investors to raise about Rs 800 crore through equity. It is also in talks with state-run banks for at least Rs 250 crore in debt under the India government credit line for carriers hit by the conflict.
Earlier in May, the centre approved ECLGS 5.0, which specifically earmarks Rs 5,000 crore to provide emergency credit and liquidity relief to the aviation sector. The scheme aims to support passenger airlines facing financial stress from surging jet fuel prices, currency volatility, and airspace closures. As per the Scheme, eligible airlines can avail of loans up to Rs 1,000 crore and additional Rs 500 crore is accessible if the promoter makes a matching Rs 500 crore equity infusion.
So far, budget carrier SpiceJet has received Rs 150 crore from Indian Bank under the ECLGS. The amount marks the first tranche of a proposed Rs 500 crore funding package being processed for the airline.
Akasa, which is owned by SNV Aviation Pvt., strengthened its financial foundation last year through the successful completion of a strategic investment transaction, welcoming Premji Invest, funds managed by 360 ONE Asset, Claypond Capital, and additional investment from the Jhunjhunwala family and associates. However, like every airline, it is hit by a sharp surge in jet fuel prices due to the crisis in West Asia.
In a recent media interaction, Akasa Air Chief Financial Officer, Ankur Goel said that the plans to increase capacity by 30% (Available Seat Kilometres, (ASKs)) in the financial year 2027 and aims to sustain aggressive growth of 30–40% year‑on‑year over the next five years.