The first regional airline from Andhra Pradesh Air Costa has unveiled plans to invest about Rs 618 crore ($100 million) over the next two years and about Rs 3,092 crore ($500 million) over 15 years. It plans to have a fleet size of 25 aircraft by 2018.
Air Costa group Chairman Ramesh Lingamaneni said the company will commence operations from October 14 with two aircraft. The airline has taken delivery of two E-170 jets and will add two more E-190 jets in November. In all, Air Costa plans to have 10 E-190 jets by end of 2014, and take the total fleet size to 25 by 2018 in phases.
Air Costa is adopting an operational strategy wherein it would be focusing mostly on under-served and lesser-competitive routes, said Ramesh.
The company said while the initial investment of $100 million will come from promoters and their friends, the airline plans to avail credit from the suppliers in the second phase of investment involving a further $400 million.
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