The Hindu Business Line : Jagson Airlines offloads stake to foreign entity

MR UTTAM KUMAR BOSE (left), President & CEO, Jagson Airlines Ltd, with Mr Ankur Bhatia, Managing Director, Amadeus India, at a press conference in the Capital on Thursday. - Kamal Narang

New Delhi , April 13

Jagson Airlines has offloaded a minority stake in the airline through a private equity placement.

While confirming this the airline Chief Executive Officer and President, Mr U.K. Bose, however refused to reveal the name of the company or individual acquiring the stake.

"The amount offloaded is in keeping with the law. The amount offloaded is less than 15.99 per cent," said Mr Bose. Airline officials indicated that the placement had been done with a foreign institution that did not have an exposure here.

Apart from Jagson, the low-cost airline Spice Jet had in December last year raised $80 million through the issue of Foreign Currency Convertible Bonds in the international market. The subscribers to the bond issue included Goldman Sachs and Istithmar, the private equity arm held by the Government of Dubai.

Jagson has already drawn up plans to start regular flights on the trunk routes from May this year. The airline, which currently operates the Dornier aircraft and helicopters on feeder routes, will operate the Airbus A-320 family of aircraft on the trunk routes.

"The airline plans to have a fleet of six Airbus aircraft by the year-end. We are also getting two MI-172 helicopters that can seat 26 passengers one of which will be given to a state government in the north-east," said Mr Bose. The induction of the two helicopters will see the fleet strength double to four.

Meanwhile, the airline entered into an agreement with Bird Information Systems Ltd (BIS) to use its airline inventory and reservation system. The airline share closed at Rs 32.60 after opening at Rs 32.25 on the BSE today.

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