Air Costa was an Indian regional airline operator that gives the strength for air connectivity across cities in Tier II as well as Tier III cities. The headquarters are located in Vijayawada and primarily located at Chennai International Airport, the airline stepped into the Indian leisure and aviation market with big expansion goals. Despite its early start and significant aircraft purchases, Air Costa suspended operations in February 2017 because of financial problems. This article provides a detailed review on Air Costa’s wealth, value, ownership, Air Costa services, and size of its operations.
Air Costa Quick Review
| Particular | Information |
| Airline Name | Air Costa |
| Type | Regional Airline |
| It was founded | October 2013, |
| Owner | LEPL Group |
| Head Office | Vijayawada, Andhra Pradesh |
| Main Hub | Chennai International Airport |
| CEO | Not publicly announced |
| Regulator | Directorate General of Civil Aviation (DGCA) |
| Fleet | Embraer E-170 & E-190 |
| Operations suspended | 28 February 2017 |
Net Worth as well as Market Cap
Air Costa operated as a private company and was never was listed in any stock market. Because of this, Air Costa did not have an official market capitalization. In 2015, Air Costa invested around 600 crores on operations, fleet acquisitions, and infrastructure. Concerns over the financial condition of planes leased ultimately resulted in the airline ceasing operations in the year 2017, effectively rendering its net operating value zero after its closing.
Corporate Leadership
LEPL Group owned Air Costa and directed the strategic direction of the airline. Air Costa did not try to divulge the name of a CEO who was long-term during its brief existence. Management at the top was worried about expanding regionally, increasing the size of its fleet along with regulatory approvals. Even with the pan-India operation receiving the green signal, at the senior management at the top, there were problems managing the costs of leasing and ensuring cash flows.
Overview of the Services
Air Costa was a full service regional airline. It offered air passenger transport services, mostly on shorter haul routes. Air Costa helped connect major cities like Chennai with destinations that were not within the region. Air Costa provided standard onboard services that were designed to connect regions. It was more concerned about access than the price wars among Air Costa and the low-cost operators.
Scale of Operations
At the peak of its operation, Air Costa operated 32 daily flights per day to nine cities in India. Air Costa had a maintenance center in Chennai and also added Embraer E-170 and E-190 aircraft to its fleet. In the year 2016, Air Costa was holding almost 0.8 percent of the domestic aviation market. Though it was planning expanding its fleet in a hurry due to financial pressures the company was forced to take its the repossession of aircraft and the suspending operations.
Air Costa’s flight demonstrates the possibilities and risks associated with that Indian regional aviation industry. The ambitions and rapid growth will not be enough to offset lease and financial problems which eventually forced it to the brink of closure.
