New Delhi: Regional airlines want to fly across the country and at least one startup is in talks with a foreign airline for possible equity participation even before getting permission to fly. The interest in India's aviation sector does not seem to diminish, never mind the punishing cost structure in which airlines are forced to operate in this country.
A senior official in the ministry of civil aviation said today that Vijayawada based Air Costa, a successful regional player, has sought permission from the ministry to go for a pan-India license. "We have sought more details from Air Costa and the matter is still pending," this official said.
Air Costa's current fleet size is four Embraer aircraft and will three more aircraft by January. The airline applied for a pan-India license in August and wants to fly to Delhi and Bengaluru once the permit is granted. As of now, the airline connects nine stations across seven airports, mainly in Southern India.
Deputy CEO Vivek Choudhary said Air Costa has been in talks for raising undisclosed amount of funds to spearhead expansion. "We are looking at private equity or a strategic investor but right now we are too small. Perhaps we will get better valuation after we grow to become a pan-India player," Choudhary said.
The ministry wanted to know from Air Costa whether it will retain its regional flying permit once it is given permission to fly pan-India to which the airline has already communicated to the ministry that it will surrender its regional permit once a national permit is with Air Costa.
02/12/15 F.Business
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A senior official in the ministry of civil aviation said today that Vijayawada based Air Costa, a successful regional player, has sought permission from the ministry to go for a pan-India license. "We have sought more details from Air Costa and the matter is still pending," this official said.
Air Costa's current fleet size is four Embraer aircraft and will three more aircraft by January. The airline applied for a pan-India license in August and wants to fly to Delhi and Bengaluru once the permit is granted. As of now, the airline connects nine stations across seven airports, mainly in Southern India.
Deputy CEO Vivek Choudhary said Air Costa has been in talks for raising undisclosed amount of funds to spearhead expansion. "We are looking at private equity or a strategic investor but right now we are too small. Perhaps we will get better valuation after we grow to become a pan-India player," Choudhary said.
The ministry wanted to know from Air Costa whether it will retain its regional flying permit once it is given permission to fly pan-India to which the airline has already communicated to the ministry that it will surrender its regional permit once a national permit is with Air Costa.
02/12/15 F.Business
