Jagson Airlines is a smallcap company. An open offer is going to be triggered soon, which will take the promoter holding to the excess of 88%.

Speaking to CNBC-TV18, JP Gupta, Chairman of Jagson Airlines said that their equity has been increased to 74% as they want to show the public that they have good strength and confidence.

The DGCA had earlier found them ineligible to fly regional airlines. With regard to that, Gupta said that they have almost been cleared for the NOC. After getting the regional schedule permit, they want to add eight aircrafts with a seating capacity of 50.   

Excerpts from CNBC-TV18’s exclusive interview with JP Gupta:

Q: What is the rationale behind taking the promoter holding to 88%, if the open offer is completely successful? Is it just to avoid any sort of takeover or is there a strategic reason behind it?

A: Our equity has been increased to 74%, because we want to invest our own money, to show to the public that we have very good strength and confidence in the company. That is why we have taken 74% and have made our equity as per the DGCA of Ministry of Civil Aviation norms. 

Q: The DGCA had earlier found you ineligible to fly regional airlines. Has there been any development on that particular front right now or are those operations still not in place to take off?

A: Yes, for regional airlines, we have been almost cleared for getting the NOC from the Ministry. We have given the presentation to the government, which they have accepted. They have recommended issuance of the NOC for the regional schedule airline.

Q: By when do you hope to be able to start these airlines? What is the kind of funds that Jagson Airlines needs?

A: We are already flying on the same routes on which we will fly after getting the regional schedule status. We have landing and parking permissions with us and are already flying. After getting regional schedule permit, we want to add eight aircrafts, which have a seating capacity of about 50.

Q: What do you hope to close 2008, with in terms of sales and profits?