Jagson to buy 13 Airbus A321 planes for $1 bn

Jan 5 | Updated: Jan 6 2006, 05:49am hrs
Jagson Airlines Ltd, an Indian airline which flies to northern tourist destinations, said it will buy $1 billion worth of planes made by Airbus SAS, the worlds biggest passenger planemaker, for its expansion.

Jagson is in discussions to buy 13 Airbus A321 planes and lease another six aircraft, Uttam Kumaar Bose, president and chief executive officer of Jagson, told reporters in New Delhi on Thursday. Jagson will invest Rs 250 crore ($56 million) to expand its business. Indian start-up carriers are buying planes and other airlines are expanding their fleet as rising incomes stoke demand for air travel in Asias fourth-biggest economy. Jet Airways (India) Ltd and other local carriers ordered more than 200 aircraft last year in the biggest expansion of the nations aviation industry.

The air travel industry is set for a strong growth and we are now going to expand to take advantage of that, said Mr Bose, the former head of Sahara Airlines Ltd.

Bloomberg