In a surprise move, Flyeasy, an yet-to-be launched airline, has agreed to buy 74 per cent stake for over ₹70 crore in Air Pegasus, whose licence was suspended last year as lessors took back all its aircraft for non-payment of dues.

“Air Pegasus will continue as a regional airline operating in tier II and III cities, while Flyeasy airline will operate as a pan-India operator with all-Airbus fleet and will have a commercial launch in May,” said Shyson Thomas, Managing Director, Air Pegasus. Flyeasy is yet to get an air operator's permit.

Thomas said Air Pegasus will now start its operations in a month's time.

He said the airline expects to take on lease a single ATR initially, and plans to get back its licence in a fortnight.

Last month, the Civil Aviation Minister, Ashok Gajapathi Raju, had said that the ministry is willing to extend all help to Air Pegasus just as it had done for Spicejet but wanted the airline to put in place a robust business plan.

As part of revamping the operations, Air Pegasus will induct 24 aircraft in the next four years out of which six will be inducted this year.

“We intend to build a strong network with Flyeasy operating into long thin routes and Air Pegasus connecting to tier II and III cities concentrating on the South initially," said Rajesh Ebrahim, Managing Director, Flyeasy.

"Strategic partnerships and code shares will be the future of Indian aviation and I feel that we have moved in the right direction," he added.

He said Flyeasy bought into Air Pegasus because of the already established network of the airline.

He said Flyeasy will operate both the airlines independent of each other.

Thomas will move out of the MD’s role and become the Vice-Chairman and Ebrahim will be the Group CEO.

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