Monday, March 06, 2017

On the brink: Air Costa stops bookings, hunts for new investors

After suspending flights last week, Vijaywada-based Air Costa has stopped taking future bookings as well. The airline had earlier blocked ticket sales till March 8. The airline is looking for an investor to back it, as per the sources. According to a report in Mint , a spokesperson of Air Costa said: “We have extended the suspension till Thursday and we have blocked the entire summer schedule bookings. Until we announce the resumption the bookings will remain on hold. The final date of resuming the operations will be clear on Monday.” The airline, set up in 2013, is yet to break even. According to the data by Directorate General of Civil Aviation, the airline reported a loss of Rs 130 crore and revenue of Rs 327 crore in 2015-16. The Mint report says the airline’s cash crisis began in January. Two Embraer jets used by the operator have been impounded due to payment defaults. This even as the airline is expected to receive 50 more such aircraft next year. Sources further said that the airline is yet to pay salaries for the month of January.
06/03/17 Money Control