Jagson’s expansion plans still in air pocket

Kolkata: Jagson Airlines’ expansion plans don’t seem to be working as expected. According to industry sources, last year it had been awaiting a directorate general of civil aviation (DGCA) approval for a scheduled airline status and had signed a letter of intent (LoI) with Airbus for lease/purchase of 19 A320s and A321s over a two-and-a-half year period. The first five were to be taken on lease to start the airline’s “hub-and-spoke” operations across the country.
However, industry sources said the DGCA “did not respond to the proposal while the Airbus deal has been shelved”.
Several top executives have exited the airline recently. Jagdish Prasad Gupta, chairman, Jagson Airlines, told DNA Money: “The scheduled carrier proposal is still hanging fire in the aviation ministry.”
Gupta said: “ We were told that all new proposals for scheduled carrier licences were put on hold. Thus, we have also been affected.”
Sources also indicated that when Jagson drafted its ambitious national rollout plans, domestic and international fund managers had pledged enough funds to allow the carrier to run for the next three years. Gupta, however, denied that there was any venture capital funding involved.
The grapevine also has it that Jagson did not meet many of the criteria required of a scheduled carrier and thus was not given the approval by the DGCA.
30/04/07 Madhumita Mookerji/Daily News & Analysis

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Categories: Jagson Airlines May 2007