Air Costa plans to expand fleet, to invest $100mln

Regional carrier Air Costa has sewn up capital expenditure plan of about Rs. 600 crore ($100 milion) to acquire new aircraft to strengthen its fleet and expand network. The Vijayawada-based airline, part of the diversified LEPL Projects Ltd, plans to add one aircraft every quarter over the new few quarters.

“The company is aiming to carve a niche as a regional airliner serving cities and towns which do not have connectivity. This is something the group has decided as we feel there is immense opportunity to serve regional virgin towns,” Chigurupati T Chowdary, Director-Finance, LEPL, said.

“Once we have a fleet of eight aircraft, then that will be a good base to further expand. We are already viable cost net and expect to break even within a year,” Chowdary said.

The company expects to meet the funding requirements through internal resources and close network over the next few months to be able to invest about $100 million.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s