Feeder airline Air-One to launch in Feb

The low-cost airline will operate through two 50-seater Embraer’s ERJ-145, leased from Swiss International Airlines. The airline will pay $1,50,000 per month as leasing fees for each aircraft. “The airline has plans to increase its fleet to five of the same make in the next one year,” Lobo said.

The airline is set up by former Indian Airlines officials and a group of ten businessmen from Southern India. The investors hold a 74 per cent stake in the airline, while the rest is held by the promoters, Lobo said.

‘‘We would be needing around Rs 33 crore for getting the airline off the ground while we will need a further Rs 20-25 crore for enhancing our fleet to five aircraft. For funding we are in talks with various financial institutions who have evinced interest,’’ he said. The airline had earlier announced that it was planning to raise $20 million as private equity fund for its aircraft acquisition. ‘‘We will follow the low-cost carrier business model and see ourselves as an all-India operational airline active on the regional routes,’’ he added.