15.2.14

Air Costa orders 50 planes

India's newest airline, Air Costa, has announced an order for 50 Embraer E2 aircraft worth $2.94 billion at list price. The order has an option for another 50 planes and if it is exercised, this would make up for a quarter of the Brazilian manufacturer's order book for the regional jets.
The Air Costa order, both firm and option, is equally divided between Embraer's E-190-E2 and E-195-E2 jets. The E-195 is a slightly longer variant of the E-190. The order is the biggest so far placed during the Singapore Air Show, where Thai-budget carrier Nok Air was another big buyer, announcing an order for 17 Boeing 737s valued at $1.45 billion.
Hyderabad-based Air Costa will start taking delivery from 2018 for the E-190 E2 jets, which will be configured in a two-class layout for 98 seats with six business class seats and the rest economy. The E-195 will have 118 seats out of which 12 will be business class seats. Air Costa will get 10 aircraft a year till the order is completed.
Part of Hyderabad-based LEPL Projects, Air Costa began operations last year and currently flies to Vijayawada, Jaipur, Bengaluru, Ahmedabad, Hyderabad and Chennai.
"Regional air services have enormous potential in India especially the ones connecting tier-1, -2 and -3 cities," said Ramesh Lingamaneni, executive director of the LEPL Group and chairman of Air Costa. "Our initial experience with our current E-Jets has been very positive."
Air Costa is a full-service airline and offers two-cabin classes which it calls Economy Plus and Economy. The aircraft it currently uses are Embraer E-170 and E-190.
The airline said it plans to link underserved markets, including key secondary and tertiary business centers, with more direct flights. The cities on the radar for Air Costa include Pune, Madurai and Vizag. Currently the airline has a regional licence, but by the time the new aircraft get delivered, Air Costa will be eligible for pan-India operations.
According to the airline's spokesperson, the airline is yet to break even despite achieving load factors in excess of 75% within the first three months of operations.

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