Lessors want Air Pegasus to return planes, approach DGCA | business-news | Hindustan Times
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Lessors want Air Pegasus to return planes, approach DGCA

business Updated: Jul 30, 2016 09:43 IST
Tushar Srivastava
Air Pegasus

Decor Aviation-promoted Air Pegasus operates to 16 sectors with Bangalore as its hub, and has a fleet of three ATR 72 aircraft.

Troubles are mounting for regional airline Air Pegasus with lessors approaching the aviation regulator to deregister its planes so that they can take them away.  Bangalore-based Air Pegasus, which did not operate a single flight for the second day running on Thursday, has defaulted on payments to leasing companies due to a severe cash crunch. The airline has cancelled flight operations indefinitely, HT reported on Thursday. 

“We have received a request from the lessors. We are examining the matter,” said an aviation ministry official, who did not wish to be named. 

Aircraft lessors, who had leased planes to Kingfisher, had also approached the Directorate General of Civil Aviation (DGCA) to take their planes back after the Vijay Mallya-led airline defaulted on payments before shutting down operations. 

According to sources, Shyson Thomas, MD, Air Pegasus, is negotiating with the lessors to reach a settlement. “We had suspended operations for two days. We will start operations from Saturday,” Thomas told HT. 

Sources, however, said it looked very unlikely that the airline would be able to start operations this week. Decor Aviation-promoted Air Pegasus operates to 16 sectors with Bangalore as its hub, and has a fleet of three ATR 72 aircraft. It launched operations in April last year. 

“The airline is in talks to raise fresh funds. It needs an infusion of at least ₹100 crore immediately,” said an official.