Jagson sells equity to FII

New Delhi, Apr 13 (UNI) Jagson Airlines has sold a portion of its equity to a foreign institutional investor (FII), its president and CEO UK Bose said today.

The low-cost airline will also come up with an initial public offering (IPO) next year to offload more equity and raise funds for fleet expansion, he said.

Mr Bose, however, refused to give further details. He was talking to reporters while announcing the appointment of Bird Information Systems for use of the airline's inventory and reservation systems (AIRS).

Government rules allow a maximum of 15.99 per cent of equity to be placed with FIIs.

The airline had earlier announced plans to invest Rs 1,500 crore in the next three years and expand its existing feeder route network to national operations.

Jagson is the country's first private airline to operate scheduled flights since 1992, using small planes and helicopters.

Currently, it operates on short routes in Himachal Pradesh, Uttaranchal and Rajasthan.

Now, it is extending operations by May-end. With Airbus A320 and A321 aircraft, it will offer 2,000 seats daily. ''Jagson will now fly as a national airline covering nine cities by this year-end with inaugural flight between New Delhi and Bangalore next month,'' said Mr Bose.

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