FOURTH INDUSTRIAL REVOLUTION.

 Big Bull is on the way to fly.

Rakesh Jhunjhunwala the big Bull of India stock market is now planning to enter the Airline business. He is aiming to start a ultra low cost Airline name as Akasa Air. He is planning to launch over 70 airplanes in just next 4 year with a sitting capacity of 180 people. Rakesh Jhunjhunwala is optimistic that more people will travel by air in future. There is a lot of growth opportunity in low cost Airline. 

This is not the first time that Rakesh Jhunjhunwala is investing in aviation sector, he had also owned over 1% stake in spicejet and 1% in Jet Airways.

After the time of COVID-19 pandemic, where the aviation sector is not performing very well and airlines company's are facing a huge losses. And it going to be very difficult and time taking activity for airlines company's to give back the loan. So it is the right time for akasa Air to enter the market.

Rakesh Jhunjhunwala is considering investing of $35 million for the venture and would own 40% stake in the airline, other investors are AIR BNB and PAR capital management and some leading former CEO 1. Aditya Ghosh- he own 10% stake in akasa Air and he is the president of Air Indigo from 2008-2017.

2. Vinay Dube- he own 15% stake in akasa Air and he is the CEO of Jet Airways.

Airline expense pie chart.

Major problem faced by Airlines company-

• Volatile crude oil prices
• Fluctuations in the exchange rate
• High Debt
• Changes in macro environment

Is rakesh Jhunjhunwala is following his guru Radhakishan Damani because he is also a stock market invester and then started his on business named as D-Mart. Where the D-MART also targeted to lower the price of goods and akasa Air is also targeting to ultra  low cost carriers.