How Rakesh Jhunjhunwala's new airline can give Boeing a lifeline grasp daily

Ace investor Rakesh Jhunjhunwala's plan to launch an ultra-low-cost airline could give planemakers like Boeing an opportunity to bounce back, and provide a boost to India's struggling airline sector.

Let's discuss in detail

 Jhunjhunwala will collaborate with former CEOs of IndiGo, the country's biggest carrier, and Jet Airways to set up his aviation company Akasa Air, betting on domestic air travel picking up soon.

• Jhunjhunwala's new venture comes amid airlines losing billions of dollars. He plans on acquiring 70 aircraft within four years and will invest $35 million and would own 40% of the carrier.
Although it is a risky bet but still rakesh jhunjhunwala can consider this bet as the amount invested by him to start his airline company is only 0.8% of his total net worth

Now
 Experts predict that there would be stiff competition between planemakers like Airbus and Boeing to lease the planes to big bulls aviation company, especially since Boeing does not have any other major operator for their 737 aircraft in India apart from SpiceJet.

• The majority of India's low-cost carriers (LCCs) - IndiGo, SpiceJet, GoFirst, and AirAsia India - operate a fleet of Airbus' narrowbody planes. While Boeing holds most of India's widebody market, competitive pricing and high costs have made LCCs and Airbus more dominant.

• Boeing's share of India's 570 narrowbody planes fell to 18% after the bankruptcy of one of its biggest customers, Jet Airways.
But amid rakesh jhunjhunwalas entry into aviation industry Boeing can get its indian business back on track ,,,,also

• An industry source said the venture could lead to Boeing's biggest deal of the year outside the US for 737s.