TruJet to invest Rs 500 crore, add new aircraft

To focus on tier-II cities, eyes break even in 12-24 months

Low-cost airline TruJet is planning to add two more aircraft to its fleet to expand operations, especially in Chennai.

The airline will add two more ATRs by January 2016.

Vankayalapti Umesh, managing director, TruJet said the airline would focus on tier-II cities for now. After two years, it proposes to add bigger aircraft to connect to metros. 

The airline will soon apply for licence to operate in the western region including Mumbai, Ahmedabad and Goa, said Umesh. 

In South, the company has identified major cities includes Vijayawada, Vizag, Tirupathi, Rajahmundry, Kadapa, Hubli, Coimbatore, Tuticorin and Salem.

TruJet has lined up investments worth around Rs 500 crore over the next five years, he added. Of the total, so far about 10-15% has already been invested. 

The airline, which already has three aircraft, connects to 10 towns from Hyderabad. Some of its routes include Hyderabad to Tirupathi and Chennai to Rajahmundry, Andhra Pradesh.

TruJet will break even in the next 12 to 24 months, he added, saying that the airline will focus on small aircrafts and smaller routes.

The airline is backed by 20 investors - actor Charan holds 26% stake while Umesh holds 22% and the rest is held by others.