Birthday Special: Had a dream of touching the sky while sitting on a wheelchair, the incomplete story of Rakesh Jhunjhunwala’s Akasa Air

Rakesh Jhunjhunwala Birthday Special: Today (July 5) is the birthday of late Indian investor Rakesh Jhunjhunwala. ‘Big Bull’ of the domestic stock market. And Rakesh Jhunjhunwala, popularly known as Warren Buffet of India, was born on (July 5, 1960) in Hyderabad, Andhra Pradesh. He died at the age of 62 due to art attack on August 14, 2022. After his death, his empire is being managed by his wife Rekha Jhunjhunwala. In a recent report, Rakesh Jhunjhunwala was considered the second most successful investor in the world. Warren Buffet ranks first in the list of the world’s most successful investors.

Rakesh Jhunjhunwala, who entered the stock market in 1985 with just Rs 5,000, has created an empire worth about Rs 46,000 crore by 2022. He has investments in many companies. Before his death, he was ranked 440th in the Forbes list of the world’s richest people. After establishing himself as a successful investor in the stock market, Rakesh Jhunjhunwala entered the aviation sector in 2022 with Akasa Air.

Investment of ₹278 crore in Akasa Air

While many big businessmen of India were afraid of going into the aviation sector, Rakesh Jhunjhunwala Invested 35 million dollars i.e. about Rs 278 crore in Akasa Airline. Jhunjhunwala and his wife Rekha held more than 40 percent stake in this airline company. Speaking on the launch of Akasa Airline, he had said that many would be wondering why I am going to start an airline company. However, rather than answer their many questions, I will just say that I am prepared to fail. He further said that it is better to fail after trying rather than not trying at all.

The real motive behind Akasa Air

Rakesh Jhunjhunwala’s objective behind starting Akasa Air was to provide air travel facilities to the common people of the country at very low cost (ultra-low-cost). Along with this, he wanted to establish a new world class and professionally operational airline in India’s aviation sector. When he entered the aviation sector, jet fuel prices were very high and many airlines were incurring losses. In these challenging times, many questions were being raised against Rakesh Jhunjhunwala regarding starting a business like airlines.

What is the current status of Akasa Air?

Akasa Air It has become one of the fastest growing airlines in the country’s aviation sector. Expanding itself, the company has added 40th aircraft to its fleet. Akasa Air, which started its journey with domestic flights, has now become an international carrier. It currently operates flights to more than 34 destinations, including 27 domestic cities in India and 7 international cities (such as Qatar, Kuwait, Saudi Arabia, Thailand and UAE).

File photo of Rakesh Jhunjhunwala, (Source- Social Media)

According to the Chief Financial Officer of Akasa Air, despite challenges like rising fuel costs and geopolitical tensions, the airline’s long-term planning is quite strong. The company has demonstrated its financial stability by registering EBITDA positive during September to March. The company has targeted to increase its capacity by 30 percent in the current financial year and has projected an annual growth of 30 to 40 percent for the next 4-5 years.

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Rakesh Jhunjhunwala’s name in controversies

In 2021, Jhunjhunwala was investigated for insider trading for unusual dealings in shares of Aptech Computers. SEBI had alleged that Jhunjhunwala traded in Aptech shares despite having unpublished price sensitive information (UPSI). According to SEBI, this was the UPSI between March 14, 2016 and September 7, 2016, which was the date of official announcement. In July 2021, SEBI had resolved the matter after making a total payment of Rs 35 crore from Jhunjhunwala and his associates.