Air Costa Inaugurates Service

Friday, 1st November 2013 at 04:36am

Air Costa, the brainchild of a local business conglomerate, LEPL Group, inaugurated service from its hub in Vijayawada with its maiden flight to Hyderabad.

The country's aviation industry suffered a beating, at least in the last 5 years, that resulted to industry-wide crisis claiming the life of the erstwhile giant - Kingfisher Airlines.

The airline company said that it will pour in additional capital amounting to Rs.610 crore in the next two years to support its expansion program.

Currently, it has an initial fleet consisting of a couple of Embraer 170 jets for its inaugural service. By next month, it will grow its fleet to 4 as it will take delivery of two more aircraft from the same family, E-190 jets. By the end of next year, Air Costa will already have a total of 10 Embraer jets in its fleet.

The airline plans to increase its fleet in phases to 25 by 2018 to support its network expansion to cover a large swathe across India.

According to the airline chairman, Lingamaneni Ramesh, the airline has adopted a unique strategy wherein it focuses on destinations most airlines consider as not lucrative enough for sustainable operations.

The strategy that it has adopted is considered as unconventional wherein the airline operates based on city pairing, linking tier II and tier III cities across the country. These routes are usually shunned by more established airlines as they appear to have low yields in terms of passenger take-up, thus compromising their operational costs, resulting to possible losses.

Air Costa operates from its hub in Vijayawada, Andhra Pradesh and flies out to destinations mostly in the southern region of the country. It will initially serve Bangalore, Chennai, Ahmedabad and Jaipur from Vijayawada Airport. Later on, it will expand its network to cover the cities of Goa, Mysore, Madurai, Thriuvanathapuram and Visakhapatnam.

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