Friday, March 17, 2017

Air Costa extends cancellations till May 31

Vijayawada-based regional airliner Air Costa, which grounded its services a fortnight ago, has started cancelling tickets booked until May 31 in a clear indication that the company is not in a position to resume the operations any time soon.

Air Costa had to halt the operations on February 28 after it failed to pay three months’ lease amount to GE Capital Aviation Services — a unit of GE Capital, from which it has leased two Embraer (EMB-190) aircraft. The company first said it has suspended the flight services only for a few days but started extending the status quo indefinitely as the negotiations with investors failed to make any quick headway.

Sources in Air Costa, however, maintained that promoters are making all efforts to bring an investor on board as soon as possible. “It will take time to resume the operations once the aircraft are grounded for more than 15 days. Pilots would be moving out and things like that,” a company official said.
17/03/17 B Dasarath Reddy/Business Standard