Air Costa was an Indian regional airline operator and provides strength to air connectivity between Tier II and Tier III cities. Headquartered at Vijayawada and majorly from Chennai International Airport, the airline entered the Indian aviation leisure market with ambitious expansion plans. Despite establishing early and making strong aircraft orders, Air Costa suspended operations in February of 2017 because of financial difficulties. This article offers a precise overview of Air Costa’s net worth, ownership, leadership, Air Costa services, and operational size.
Air Costa Quick Overview
| Particular | Details |
| Airline Name | Air Costa |
| Type | Regional Airline |
| Founded | October 2013 |
| Owner | LEPL Group |
| Head Office | Vijayawada, Andhra Pradesh |
| Main Hub | Chennai International Airport |
| CEO | Not publicly disclosed |
| Regulator | Directorate General of Civil Aviation (DGCA) |
| Fleet | Embraer E-170 & E-190 |
| Operations Suspended | 28 February 2017 |
Net Worth and Market Cap
Air Costa operated as a privately held airline and never listed on any stock exchange. Due to this, the company did not have an official market cap. As of 2015, Air Costa invested around ₹600 crore in its operations, fleet acquisition and infrastructure. Financial issues concerning planes leasing eventually led to the airline suspending services in 2017, effectively making its operational net worth zero following closure.
Corporate Leadership
LEPL Group owned Air Costa, and directed its strategic direction. The airline did not make any effort to disclose the name of a long-term CEO in its short working existence. Senior management was concerned with regional expansion, fleet growth and regulatory approvals. Despite the pan-India operation getting the green light, at the leadership level there were difficulties in controlling the cost of leasing and maintaining cash flows.
Overview of Services
Air Costa was a full service regional airline. It offered passenger air transport services mainly on the short haul routes. The airline helped to link major cities such as Chennai with backward destinations in the region. Air Costa provided standard onboard services aimed at traveling between regional areas and was more concerned with accessibility than price wars between Air Costa and the low-cost operators.
Scale of Operations
At its peak, Air Costa operated 32 daily flights across nine destinations in India. The airline had a maintenance facility at Chennai and added Embraer E-170 and E-190 aircraft to its fleet. In 2016, Air Costa was holding almost 0.8% of the domestic aviation market. Although it planned on aggressive fleet expansion, due to financial constraints, it resulted in aircraft repossession and suspension of operations.
Air Costa’s journey therefore represents the potential and the risks of the Indian regional aviation sector. Strong ambition and rapid expansion could not compensate for financial and leasing problems that eventually pushed it into shut down.
