Bengaluru: Air Costa, the Vijayawada based airline, is in talks with Qatar Airways for an equity tie up.
Sources in the regional airline told BusinessLine that even as Air Costa suspended its operations for a day early this month, its top management was in Doha in Qatar to negotiate the deal.
The airline resumed operations after it restructured its leasing terms with its lessor, GECAS (GE Capital Aviation Services). It had earlier leased its two 78-seater E170s from Embraer itself. Air Costa is promoted by the LEPL Group, which has interests ranging from real estate to power plants. A spokesperson for the company refused to comment on the developments.
Sources said that Air Costa is willing to sell 26 per cent equity to the foreign airline but is expected to shed a higher stake if it is able to get more funds. Last year, it was in talks with a couple of foreign investors to sell 26 per cent stake to raise Rs. 350 crore. It has placed orders for 50 new E190s worth $ 2.94 billion which are expected to start arriving from 2018.
Air Costa now has three 110 seater E190 Embraers and flies to nine destinations. It operates 35 flights daily and has already flown over 1 million passengers. By 2018, it plans to have a total fleet size of 12 aircraft and fly to 18 stations.
To Read the News in Full 09/08/16 Business Line
Sources in the regional airline told BusinessLine that even as Air Costa suspended its operations for a day early this month, its top management was in Doha in Qatar to negotiate the deal.
The airline resumed operations after it restructured its leasing terms with its lessor, GECAS (GE Capital Aviation Services). It had earlier leased its two 78-seater E170s from Embraer itself. Air Costa is promoted by the LEPL Group, which has interests ranging from real estate to power plants. A spokesperson for the company refused to comment on the developments.
Sources said that Air Costa is willing to sell 26 per cent equity to the foreign airline but is expected to shed a higher stake if it is able to get more funds. Last year, it was in talks with a couple of foreign investors to sell 26 per cent stake to raise Rs. 350 crore. It has placed orders for 50 new E190s worth $ 2.94 billion which are expected to start arriving from 2018.
Air Costa now has three 110 seater E190 Embraers and flies to nine destinations. It operates 35 flights daily and has already flown over 1 million passengers. By 2018, it plans to have a total fleet size of 12 aircraft and fly to 18 stations.
To Read the News in Full 09/08/16 Business Line
No comments:
Post a Comment