Monday, March 20, 2017

Air Costa pins hopes on funds infusion for revival

Regional airliner Air Costa is passing through turbulent times and pinning hopes on some investments coming through for its revival.

Flights of the carrier, which operates with a base in Vijayawada to nine destinations have been suspended since February 28, and the financial crunch has made things worse for the staff whose salaries are yet to be paid. When contacted, Kavi Chaurasia, Vice-President Marketing, told BusinessLine, “We are pinning hopes on bringing in strategic investors and infuse funds to revive the airline. The flights were suspended due to financial crunch.”

The airliner, which celebrated its third anniversary in October 2016 under a regional air licence was upgraded as a national player with licence for pan-India operations by the Director-General of Civil Aviation.

The company management had been planning to connect to smaller cities and Delhi and Mumbai as it strengthens its fleet. However, due to financial crunch and delayed payments, the aircraft leased were grounded and flights stopped in February.
19/03/17 The Hindu Business Line