VIJAYAWADA: Regional air carrier Air Costa on Tuesday suspended flight operations temporarily citing ‘financial issues’ with lessors. Operations are likely to resume Thursday or Friday.
The airline has suspended the 16 daily flights to eight destinations including two leased Embraer aircraft till Wednesday. Air Costa normally operates up to 24 flights, but is currently operating only 16 flights because it’s off-season as well as due to the partial closure of Kempegowda International Airport at Bengaluru.
Speaking to Express, Air Costa vice-president (marketing and brand communication) Kavi Chaurasia said the company was trying to resolve the issues with the lessors.
“We are renegotiating the lease agreements and are also in advance stage of talks with our investors for fund infusion as part of expansion plans. We are also discussing over inducting new aircrafts and expanding our operations to ensure pan-India presence.”
The company is making alternate travel arrangements for its passengers who have already booked tickets on these flights. While ticket fares are being refunded to many, a few passengers who are in emergency are being provided with alternate mode of transportation.
Promoted by Vijayawada-based LEPL Group, Air Costa is among the major regional carriers in India. The airline had suspended operations in August last year for the same reason. During the same period, several other aircraft operators also suspended their operations due to concerns over financial viability of the regional airlines.