Chennai: Andhra Pradesh-based regional airline Air Costa suspended its flight operations, citing ‘financial difficulties’ on Tuesday barely four years into operations.
Allegedly mired in debt, the company, which had four Embraer-190 aircraft when it started off in 2013, has been left with none with the planes seized by its lender GE Capital Aviation Services (GECAS). Sources in the airline confirmed that the company has been struggling financially since 2015.
Sixteen flights to eight destinations were affected on Tuesday, but Air Costa said they will resume on Thursday or Friday. Employees said the management did not keep them in the loop regarding the grounding of operations.
The beleaguered airline has reportedly defaulted on payments to its lender. Sources in the company said some employees have not been paid since December 2016.
01/03/17 Maria Kuruvilla/New Indian Express
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Allegedly mired in debt, the company, which had four Embraer-190 aircraft when it started off in 2013, has been left with none with the planes seized by its lender GE Capital Aviation Services (GECAS). Sources in the airline confirmed that the company has been struggling financially since 2015.
Sixteen flights to eight destinations were affected on Tuesday, but Air Costa said they will resume on Thursday or Friday. Employees said the management did not keep them in the loop regarding the grounding of operations.
The beleaguered airline has reportedly defaulted on payments to its lender. Sources in the company said some employees have not been paid since December 2016.
01/03/17 Maria Kuruvilla/New Indian Express
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