Jagson Airline to launch low-cost airline, buy Bombardiers

BY A CORRESPONDENT
3rd January 2006

Jagson Airlines is planning to launch a low-cost airline, after acquiring licence for a scheduled operator. Jagson, promoted by Jagdish Gupta, has already roped in UK Bose as its chief executive officer. UK Bose was formerly with Air Sahara as its CEO, where he had a distinguished career.

Jagson Airlines, which currently operates chartered flights, is planning to raise capital through an IPO or through private equity funds.

The company will also have to adhere to several norms set by DGCA before it can acquire flying licence as a regular service carrier.

Jagson Airlines currently operates flights in Delhi-Jaipur-Udaipur, Delhi-Jaipur-Jaisalmer, Delhi-kullu-Dharamshalaand Delhi-Simla-Kullu sectors. Jagson Airlines owns three 18-seater Dornier aircraft, and one Chetak helicopter.

The company has reportedly plans to increase its authorised capital to Rs 50 crore from the current Rs 15 crore. Jagson Airlines had earlier announced that it will purchase three Bombardier jets.

The three Bombardier 50-seaters will be between 2 to 3 years old. Jagson Airlines holds a licence for air operations since 1992.

Jagson Airlines will be the second airline in India to fly Bombardiers. Air Sahara is the only other airline in India which operates Bombardiers.