Tuesday, June 20, 2017

Local carriers wrestle with cashflow crunch

Chennai: Even as the central government is bent on promoting affordable air travel in India, small private aircraft carriers have begun to be forced to the wayside. On Sunday, the Directorate General of Civil Aviation notified that it had cancelled the operating licenses of Air Carnival — a Coimbatore-based single aircraft carrier.

According to the DGCA, the reason behind the cancellation was that the carrier had been unable to operate flights since grounding its single aircraft earlier this year, in April. Sources in the DGCA say that the company has been plagued with financial problems. The DGCA had also suspended licenses of regional carriers Air Costa and Air Pegasus for having been unable to operate flights.

“Its aircraft has been deregistered and seized by the lessor. This is very similar to what happened with Air Pegasus, but the latter has managed to find some financial backers,” pointed out a senior industry analyst.
Air Pegasus had been deprived of its Air Operator Permit (AOP) in March 2016, after facing similar trouble with the lessors of its two aircraft. While not in operation since July 27, 2016, the airline said in April that it has applied for permits to import an aircraft and begin operations again
20/06/17 Jonathan Ananda/Indian Express