Jagson Airlines enters the crowded budget airline market in India
India gets yet another budget airline in their already crowded aviation market. The New Delhi-based Jagson group has announced that they plan to enter this market with the launch of the Jagson Airlines. This airline company would start its operations with the flight between Delhi and Bangalore in April. They have further plans to cover other routes including Delhi, Bangalore, Patna, Mumbai, Kolkata, Guwahati, Jaipur, Dibrugarh, and Goa by 2006 end.
Jagson Group has initial plans to invest close to Rs 250 crores in this venture, which would be increased as the company start its operations and expand their availability in the Indian market. The parent company of Jagson Airlines have their base office in new Delhi and have a presence in markets like multi-trading activity trading, offshore drilling in oil and gas, liquid cargo warehousing, global storage and retail distribution for petroleum products and e-commerce.
The airline company would be targeting economy class travelers and frequent flyers with competitive rates. They would be facing intense competition from existing budget airlines like Air Deccan, GoAir and the likes. Jagson Airlines is acquiring 19 Airbus aircraft for its fleet and also has plans to lease another six planes to get its operations started.
The company also said that they plan to employ close to 800 people in the first year. They have further plans to rope in more workers as they expand their operations. Jagson Airlines president and CEO Uttam Kumar Bose said in a statement about their plans for the Indian market: â€œThe backbone of domestic air travel has been the economy class business traveler or frequent flyers of full service airlines. However, they seem to have lost out on comfort, choice, and service in the recasting of the airline business around low cost carriers.â€