Unlocking the Strategy of Akasa Air : A Guide to Identify Business Opportunities

Unlocking the Strategy of Akasa Air : A Guide to Identify Business Opportunities

Akasa Air, a new Indian airline, has been in the news lately for its innovative approach to the aviation industry. The airline plans to focus on the untapped potential of Tier 2 and Tier 3 cities in India, which were neglected by bigger airlines due to a lack of demand. In this article, we will explore the strategy of Akasa Air and how it presents an opportunity for businesses.


The Akasa Air Strategy


Akasa Air’s strategy is to provide affordable air travel to smaller cities in India. The airline plans to target destinations with at least one million population, which it believes are potential customers.

Akasa Air also plans to differentiate itself by offering a more personalized and seamless travel experience. This includes providing a digital-first approach to bookings, check-ins, in-flight screening, and an all-economy configuration with spacious seats and generous legroom.


The key component of Akasa Air’s strategy is its focus on regional airports, rather than competing with other airlines at larger airports. This strategy allows the airline to avoid high landing fees and costs associated with major airports. It leverages Akasa Air to offer more direct flights to customers, as smaller airports often have fewer connecting flights.


Another important aspect of Akasa Air’s strategy is its use of technology to streamline operations. The airline has advanced the technologies that allow it to operate more efficiently and with lower costs. For example, Akasa Air uses a cloud-based reservation system that allows customers to book flights online. The airline also uses data analytics to optimize flight schedules and minimize delays.


Identifying Business Opportunities


Akasa Air’s strategy presents several business opportunities, particularly for businesses operating in Tier 2 and Tier 3 cities. Here are some ways in which businesses can capitalize on this opportunity:


  1. Tourism and Hospitality: With the increase in air connectivity, smaller cities are likely to see a surge in tourism. This presents an opportunity for businesses in the tourism and hospitality sector, such as hotels, restaurants, and tour operators, to cater to the needs of travellers.


  1. E-commerce: As more people in smaller cities gain access to air travel, the e-commerce industry is likely to see a boom. Businesses in this sector can tap into the growing market by expanding their operations to smaller cities and offering localized products and services.


  1. Logistics and Transportation: With the increase in air connectivity, there will be a corresponding increase in the demand for logistics and transportation services. Businesses in this sector can explore opportunities to provide logistics and transportation services to both passengers and cargo.


  1. Real Estate: Businesses in the real estate sector can capitalize on this opportunity by investing in property development projects in Tier 2 and Tier 3 cities.


  1. Retail: With the increase in air travel, there is likely to be growth in the retail industry as well. Businesses in this sector can explore opportunities to expand their operations to smaller cities and offer localized products and services.


  1. Focus on Customer Experience: One of the most notable aspects of Akasa Air is its focus on customer experience. The airline aims to provide a seamless travel experience to its customers, which includes a range of services and amenities to make their journey comfortable and convenient.


  1. Use of Technology: Another key strategy used by Akasa Air is the use of technology. The airline has invested in a range of technologies to improve the customer experience, including mobile apps, self-check-in kiosks, and in-flight entertainment systems. These technologies help to make the travel experience smoother and more convenient for customers.


  1. Low-Cost Model: Akasa Air operates on a low-cost model, which allows it to offer competitive prices to customers. This model is based on keeping costs low by operating a lean organization, reducing overheads, and optimizing operational efficiency. This strategy has helped the airline to compete with established players in the industry and gain market share.


The low-cost model can be a powerful tool for market penetration and business opportunities. By keeping costs low, businesses can offer competitive prices and target price-sensitive customers. This approach can be particularly effective in markets where customers are highly price-sensitive.


  1. Strategic Partnerships: Akasa Air has also formed strategic partnerships with other companies to expand its reach and offer additional services to customers. For example, the airline has partnered with hotels and car rental companies to offer bundled travel packages to customers. These partnerships help to create customer value and differentiate the airline from competitors.


Strategic partnerships help businesses to identify opportunities. By partnering with other companies, businesses can expand their reach and offer complementary products and services to customers. This can help to create new revenue streams and open up new markets.


  1. Emphasis on Sustainability: Finally, Akasa Air has also emphasized sustainability in its operations. The airline has taken steps to reduce its carbon footprint, including investing in fuel-efficient aircraft and using sustainable materials for its operations. This emphasis on sustainability has helped the airline to appeal to environmentally conscious customers and differentiate it from competitors.


Businesses can appeal to customers who are increasingly concerned about the environment and are willing to pay a premium for sustainable products and services. This approach can also help to improve brand reputation and have a positive impact on society.


  1. Cargo: Akasa Air’s focus on regional markets also presents an opportunity for businesses in the cargo industry. With limited air connectivity in smaller cities, business traders in these cities face challenges in transporting goods. Akasa Air’s low-cost model and focus on regional markets is an opportunity for businesses in the cargo industry to transport goods more efficiently and cost-effectively. Businesses that offer logistics and transportation services can leverage Akasa Air’s network to expand their reach and tap into new markets.


  1. Stay agile: Finally, it’s important to stay agile and be willing to pivot your business strategy as the market changes. Akasa Air was able to identify the gap in the market and its business model to fill that gap. Be open to new opportunities and be willing to take calculated risks to stay ahead of your competitors.


  1. Identify unmet needs: The first step in identifying business opportunities is to look for unmet needs in your market. This could be a need for more affordable products or services, a need for greater convenience, or a need for better customer service. Look for areas where your competitors are falling short and consider how you could fill that gap.


Challenges and Risks


While the strategy of Akasa Air presents several business opportunities, there are challenges and risks associated with it. Here are some of the challenges that businesses may face:


  1. Infrastructure: Smaller cities in India often lack the infrastructure required to support air travel. This includes airports, roads, and public transportation.


  1. Competition: While Akasa Air is currently the only airline focusing on Tier 2 and Tier 3 cities, other airlines will likely follow suit.


  1. Market Demand: While Akasa Air believes that there is untapped demand for air travel in smaller cities, it remains to be seen whether this demand will materialize and monetize.


  1. Regulatory Environment: The aviation industry in India is highly regulated, and airlines need to comply with various regulations and guidelines for operating in different states.




The strategy of Akasa Air presents an exciting opportunity for businesses in India. With a focus on Tier 2 and Tier 3 cities, the airline will unlock the potential of these cities and create new opportunities for various sectors.