Pan India plan in 3 months: Jagson Airlines

466 Investors following Jagson Airlines. Share this News with them.

0

Like this story, share it with millions of investors on M3

Pan India plan in 3 months: Jagson Airlines

The Jagson Airlines stock has been moving up quite smartly. It’s a smallcap stock. Though it was down 3.2% on Thursday, it has been moving up quite steadily to Rs 24. Senior Vice President of Sales & Marketing of Jagson Airlines, Koustav Dhar discusses the company's business.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Closing Bell on CNBC-TV18 Watch the full show » RELATED NEWS Jagson Airlines trips on selling pressure Jagson Airlines faces starting trouble ALSO READ See latest News about Jagson Airlines See previous management interviews See what other Experts & Brokerages are saying about Jagson Airlines BSE | NSE 01/01/70 Are Mutual Funds betting on ?

The Jagson Airlines' stock has been moving up quite smartly. It's a small cap stock. Though it was down 3.2% on Thursday, it has been moving up quite steadily to Rs 24.

Discussing the company's business plan, Senior Vice President of Sales & Marketing of Jagson Airlines , Koustav Dhar says the older aircraft are being done away with and the company is moving into a larger operation of Dash 8, 50-seater aircraft followed by an Airbus operation of about 18 Airbuses for a pan India operation.

Excerpts from CNBC-TV18's exclusive interview with Koustav Dhar:

Q: What exactly is your game plan now because today you operate on routes like Shimla, Jodhpur, Kullu, etc? Do you plan to take it slightly more national and operate on bigger routes?

A: For the last one year we have been trying to get into a full service airline, with a full schedule operation all across the country and bring in our Airbus operation. That has somehow got delayed due to the new policy of the Civil Aviation Ministry. We are expecting the clearances and other things to happen in about a fortnight to a month's time.

We have been a very steady player in northern India, especially in the hilly regions like Shimla, Manali, Kullu Nainital and Dharamsala. We are also starting our Chandigarh operation soon. We are doing away with our older aircraft, which is a Dornier 228 and moving into a larger operation of Dash 8, 50-seater aircraft followed by an Airbus operation of about 18 Airbuses for a pan India operation. It should start in about two-three months time. The management plans have been made.

We have made a lot of announcements in the past, but the policies held us down. But things are positive now, fuel prices are going down and we have been able to make good amount of money through fuel surcharges. Most of the ticket prices have become stable and that's how you see most of the stocks of the bigger players like Jet Airways, Deccan and Spice Jet going up.

So from Rs 18, we have touched Rs 24 and yesterday we closed at about Rs 24.60. I think we should go further up. Things are very positive for the aviation sector at this moment.

Q: Regarding your existing routes and the kind of load factors you have, the point you made about pricing; how much have you increased ticket prices by in the past one-month or so?

A: We haven't increased the prices, instead we have been able to maintain them, though we have some competitions in sectors like Kullu. But we have been able to stabilise our prices.

As far as load factors are concerned, we have been consistent for the last six months at about 84% load factor because we operate with a lower inventory. It's an 18-seater aircraft and we expect to move to a 50-seater aircraft by January. The forward loads of forward bookings which we have seen shows that we will be able to maintain atleast a 75% load factor in these sectors.

We came on line about two months back and that's the reason why we are having a lot of global movement happening, a lot of international passengers going into these sectors, which gives us a very healthy bottomline.

Q: Which routes would you start operating on, when you actually get your national plan going in the next two-three months, the first three-four new additions to your route plan?

A: With the Airbus operation, we will be flying to all the metro cities because our business model and business plan has been made in such a way. But with the Dash 8 aircraft just landing in January, we will be operating mostly in the northern sectors, which will also include Dehra Dun, Chandigarh, Raipur, Pathanpur, Amritsar and some more sectors to add on.

Q: How much does the plan cost you in terms of raising money for all these expansion plans? We believe you did a private placement. Any other options you are looking at to raise money?

A: At this moment, we are open to private placements. We have spoken to a lot of foreign players and talks are still on. It is in the final stages and we would be making some announcements in a fortnight or maybe IN a month's time. We are going through a very healthy phase and you will hear a lot of things from us.