The aviation regulator DGCA has deregistered two aircraft left with the grounded airline Air Costa.
According to sources, the Directorate General of Civil Aviation (DGCA) wrote to the airline that its two Embraer aircraft have been removed from the Civil Aircraft Register.
The Vijaywada—based airline has not flown since February and had cancelled bookings till May because of cash crunch and financial issues with the aircraft lessors.
The latest action by the DGCA will effectively allow lessors to take back the aircraft from Air Costa, the sources said.
The airline has also not paid salary to its 450 employees since January resulting in an exodus of employees, including 40 pilots.
The employees are also planning a protest at the airline’s headquarters in Vijaywada demanding payment of their salary.
The airline’s monthly wage bill stands at around Rs 4 crore, the sources said.