Thursday, March 09, 2017

Air Costa continues to look for investors

Domestic airline Air Costa, which had abruptly suspended its operations a week ago, is still looking for investors who could help the grounded fleet of the carrier take off.

On February 28, the airline’s two aircraft were impounded by the lessor over financial issues forcing the airline to cancel all its flights and arrange alternative flights for the passengers. It was then operating 16 flights a day to eight destinations in the country.

The airline then announced suspension of the operations till March 5 while it was looking for investors, but ended up extending the suspension to March 15. The airline had cancelled the scheduled tickets and also stopped all bookings until further announcement.
“As per the earlier update, operations are suspended until March 15. By then we will give a final update on when we are resuming,” Kavi Chaurasia, vice-president (Marketing and Media Relations) told The Hindu.

He said the search for investors was on and that active talks were going on. However, this was not the first time the airline had abruptly stopped the operations. It faced a similar situation with the lessor and had halted services briefly in August last.

The city headquartered airline has leased two Embraer 190 jets from the GE Capital Aviation Services and started operations in October 2013. It is the first regional airline of South India promoted by the LEPL group founded by L.P. Bhaskar Rao.
09/03/17 Tharun Boda/The Hindu