The Hindu Business Line : Jagson to buy 19 Airbus aircraft — Plans metro route operations in 3-4 months

Mr Uttam Kumar Bose (left), President & CEO, Jagson Airlines and Chairman, Mr J.P. Gupta, at a press conference in the Capital on Thursday. - Ramesh Sharma

New Delhi , Jan. 5

JAGSON Airlines on Thursday announced its plan to acquire 19 Airbus aircraft over the next three years that would be used to launch flights between major metro cities.

"We plan to begin operating on the metro routes by April-May this year. The first flight will be between Delhi and Bangalore. We also plan to have regular flights to nine cities by year-end. The initial operations will be launched with six leased Airbus aircraft. The leased aircraft will arrive in batches," the airline's newly appointed President and Chief Executive Officer, Mr Uttam Kumar Bose, said.

The airline currently operates Dornier aircraft on feeder routes from Delhi.

While the first six aircraft that the airline will be inducting will be leased, Jagson plans to purchase 13 other aircraft over a three-year period. "The initial investment will be in the region of Rs 250 crore that will be ramped up to Rs 1,500 crore in three years. This will be done via foreign equity participation and promoter equity," Mr Bose said.

The airline is likely to offer 20-40 per cent equity to a foreign partner.

The airline claims to have `frozen plans' for aircraft induction with Airbus. It is looking to operate either the Airbus A-320 or A-321 aircraft. Jagson plans to offer flights to several cities, including Delhi, Bangalore, Patna, Mumbai, Kolkata and Goa initially, while the second phase plan will see it not only operate more flights to these cities but also expand its operations to include Hyderabad and Kochi in its network.

Officials were tight-lipped on the fares. "The airline pricing will be competitive. The airline will focus on economy-class corporate travellers, so we need to provide something special for them," Mr Bose said.