Air Costa Builds Up Fleet

Thursday, 13th February 2014 at 07:54am

India's youngest airline, Air Costa, has just signed a contract with Brazil-based Embraer for a firm order of 50 E-Jet E2 aircraft in its effort to build up its fleet which is currently composed of 4 leased Embraer jets, two of each type, ERJ 170 and ERJ 190.

The total purchase deal is reportedly worth US$2.94 billion or roughly Rs.18,000 crore during the recent Singapore Air Show on Thursday.

Air Costa, a regional airline, will hold the distinction of becoming the first Indian carrier to have Embraer E-Jets in its fleet when it starts to take delivery in 2018. The E-Jet E2 family of aircraft is a new generation aircraft which is the revamped version of its predecessor, the E-Jet family.

The firm orders of 50 Embraer jets from an Indian airline is considered as the first in Indian commercial aviation history to have that number of fleet of such type of aircraft.

Air Costa was established in early 2013 and commenced commercial operations in October of that same year with two leased E-170 planes. It currently serves six domestic destinations including Ahmedabad, Bangalore, Chennai, Hyderabad, Jaipur and Vijayawada, its main hub.

The airline will focus on tier II and tier III cities where efficient air service is largely unmet. Industry analysts noted that these destinations are non-metro cities and there is potential for growth if the right conditions exist.

The huge orders of 50 E-Jet E2 aircraft will be used to support its massive expansion plans in the domestic sector, mainly in southern parts of India. upon its delivery in 2018.

Currently, Air Costa relies on two leased E170 and another two E190 jets. The E170 is the original variant of the E-Jet family with a seat capacity of 98 while the E190 is the extended variant with a capacity of 118 passengers.

The regional carrier also has the options to purchase rights for 50 additional aircraft of the same type.

By: Pete Lee.