Akasa Air, a newly launched airline in India, is facing a crisis as 43 of its pilots resigned recently without serving the mandatory notice period. This has forced Akasa Air to cancel around 24 flights per day in September, amounting to 600-700 flights for the month. The resigning pilots are reported to have joined Akasa Air’s rival airlines. Akasa Air has requested authorities to take action against the pilots and is seeking compensation of Rs 22 crore for revenue losses. While acknowledging the pilot shortage, Akasa Air says it has a strong financial profile to continue operations. However, the mass resignations could force the airline to shut down if they are not addressed.
FinTech lenders are shifting away from new-to-credit customers as default rates have risen. According to TransUnion CIBIL data, FinTech loan originations to new customers dropped from 29% in FY2019 to just 13% in FY2023. Personal loan default rates for FinTech companies increased to 3.2% compared to 0.9% for other lenders. Younger borrowers under age 25 and those in urban/rural areas faced higher delinquency rates. In response, FinTech lenders are focusing more on “prime” customers with robust credit profiles, whose loans comprised just 3% of lending in FY2019 but grew to 18% in FY2023. This aligns with industry efforts to prioritize profitability and mitigate risks from rising non-performing assets.
Federated social networks are the future over walled gardens like Facebook and Twitter. They note that it has become harder for articles to go viral on Twitter since Elon Musk’s takeover. Federated networks like Reddit and Substack allow discoverability through specialized communities while maintaining independence, making information more accessible. As major platforms prioritize keeping users on-site, federated networks improve the online experience. While fame as a writer is unrealistic, Substack authors can build an audience and earn a living through their work. In the long run, federated models may prove more durable as they decentralize content discovery rather than concentrating power within a single platform.
India is increasingly seen as the world’s next major economic power due to several converging positive trends. Rising consumer demand from the growing middle class is fueling growth. Companies that offer affordable, locally adapted innovations are particularly successful. Meanwhile, India’s large workforce and improving infrastructure are enhancing supply. India also benefits from a favorable geopolitical climate and connections through its global diaspora network. However, imbalanced growth across regions and unrealized potential in the population threaten to slow progress. Uneven development and divisive politics could exacerbate social tensions if not adequately addressed. Additionally, barriers like bureaucratic inefficiencies continue holding India back from its full economic capabilities. Overall, while hurdles remain, India shows signs of becoming a credible rising global economic force if it can overcome these challenges.