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Saturday, April 15, 2006

Jagson Airlines can go for public offer next year

Low cost carrier Jagson Airlines, which is to launch operations from May, has said that it has sold a little less than 15.99% stake to a foreign investor and could go in for a public issue next year, reports agencies.

"We have given less than 15.99% stake to the foreign investor and we may go public next year," Jagson President and CEO U K Bose told.

He, however, refused to disclose the investor's name or the value of the follow on public offer, FPO.

Under the present rules, no foreign airline is allowed to pick a stake in Indian carriers but foreign institutional investors can do so up to 15.99% of the total.

Announcing that the airline would start trunk operations from May-end, Bose said Jagson Airlines would get two Airbus A-321 aircraft by that time and have a fleet of six of these planes by the year-end.

"All the aircraft would be on a two-class configuration of economy and executive economy classes, having a price differential of about 15%. The aim is to attract the economy-class business traveller and maintain a healthy financial status for the airline," he said.

With the first two A-321s, Jagson would launch services to nine cities, with the inaugural flight covering the Delhi-Bangalore sector. It would add another seven aircraft by the end of 2007 and eight more in 2008.

He said two 26-seater MI-172 helicopters would also join the chopper fleet this month, taking the total number to four.

Jagson and Bird Information Systems also announced a strategic partnership with the latter providing a web-based service in areas of inventory control, ticketing, reservation, Internet booking engine, distribution and departure control, Bird's Executive Director Ankur Bhatia said.

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