Regional airliner Air Costa is passing through turbulent times and pinning hopes on some investments coming through for its revival.
Flights of the carrier, which operates with a base in Vijayawada to nine destinations have been suspended since February 28, and the financial crunch has made things worse for the staff whose salaries are yet to be paid. When contacted, Kavi Chaurasia, Vice-President Marketing, told BusinessLine , “We are pinning hopes on bringing in strategic investors and infuse funds to revive the airline. The flights were suspended due to financial crunch.”
The airliner, which celebrated its third anniversary in October 2016 under a regional air licence was upgraded as a national player with licence for pan-India operations by the Director-General of Civil Aviation.
The company management had been planning to connect to smaller cities and Delhi and Mumbai as it strengthens its fleet. However, due to financial crunch and delayed payments, the aircraft leased were grounded and flights stopped in February.
While the promoters of the airline, the diversified LEPL Group from Vijayawada had big plans for the airliner and announced decision to book a number of aircraft to meet its expansion plans, the cash crunch and delay in finding a strategic partner has affected the airline performance and gradually, the airliner was forced to ground the flights.
With a staff of over 600, their salaries are yet to be paid leading to concern. A number of the pilots have also moved out to get engaged in other airliners in the expansion mode.
The airliner was planning to operate with six aircraft by December 2016, early 2017. But the financial difficulties and delays in securing funds have not only grounded the airliner but also impacted its staff as they are anxious about salaries.