Rakesh Jhunjhunwala backed Akasa Air to partner Griffin for sale, leaseback of Boeing 737-8 aircraft

Akasa Air has signed a contract with Griffin Global Asset Management, an Irish leasing company, for the sale and leaseback of five Boeing 737-8 aircraft. The airline sells its jets to a leasing business and then leases them back under the sale and leaseback arrangement. This frees up the funds that the airline used to purchase the plane. On November 26, 2021, Akasa Air agreed to buy 72 Max planes from Boeing, just three months after the Directorate General of Civil Aviation (DGCA) gave the planes then go light. 

Akasa Air is scheduled to receive its first Max aircraft this month and is planning to launch its commercial flight operations in July. A statement by Griffin Global Asset Management said it "is pleased to announce the mandate for purchase and leaseback of five Boeing 737-8 aircraft with Akasa Air, a new airline based in India".

“We are pleased to have Griffin as our partners in growth as we embark on our aviation journey. The high degree of confidence and endorsement from the Griffin team is a testimony to Akasa Air’s robust and sustainable future.” - Vinay Dube, CEO. https://t.co/qFE6XcCrMv — Akasa Air (@AkasaAir) June 9, 2022

The airline, which is backed by ace investor Rakesh Jhunjhunwala and aviation veterans Vinay Dube and Aditya Ghosh, received the no-objection certificate (NOC) from the Ministry of Civil Aviation in August 2021 to launch commercial flight operations.

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Commenting on the contract with Griffin, Dube, Founder, Managing Director and CEO of Akasa Air, said, "We are pleased to have Griffin as our partner in growth as we embark on our aviation journey. The high degree of confidence and endorsement from the Griffin team is a testimony to Akasa Air's robust and sustainable future."

With inputs from PTI