Air Costa plans to raise funds through stake sale; to add three more Embraer aircraft

MUMBAI: Air Costa will add three more Embraer aircraft in its fleet between September and January and plans to raise funds through a stake sale to a private equity investor in the next three months, the director and chief executive of its parent LEPL Group said on Saturday.

The Vijaywada-based regional carrier currently has four Embraer jets — 67-seater E-170s and 112-seater E-190s — and operates 34 daily flights to south Indian cities from Vijaywada and Chennai. It started operations in October 2013.

"We plan to get three more of the E-190s," LVS Rajasekhar told ET. Experts have critiqued Air Costa's decision of getting two different sized planes in such a small fleet, adding it would raise maintenance costs. Rajasekhar said after a year, the airline may consider phasing out the E-170s. It has also ordered 50 Embraer E-2 jets, deliveries for which will begin in 2018.
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