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.