Air Pegasus eyes market reentry in March this year

 ‘Grounded’ Bengaluru-based regional carrier Air Pegasus will be taking to the sky for a second time on March 1, following a city-based startup airline, Flyeasy’s decision to take a majority 74% stake in the former, through a strategic partnership.

It must be noted that Air Pegasus had ‘temporarily’ ceased operations on July 29, 2016, owing to certain financial issues. With Flyeasy seeking interest to invest in the regional carrier, for which key discussions are underway, the airline will be commencing its original flight plan, serving Bengaluru-Hubballi, Bengaluru-Chennai, Bengaluru-Mangaluru, Bengaluru-Madurai, Bengaluru-Thiruvananthapuram, and Bengaluru-Kochi, among other sectors.

Talking to DH, Air Pegasus Managing Director Shyson Thomas said, “In order to revive our AOP (Air Operators Permit), we will bring in one ATR 72 aircraft immediately, followed by another in March. By the end of this financial year, we will have six aircraft, which will be scaled to 24 planes in four years. We’ll continue as the same regional carrier, with the same branding, and same call sign.”

Flyeasy to take off

Meanwhile, Flyeasy strategises to build a complete air travel network through this pact, while embarking on its own plans in the Indian market. The company will launch its own no-frills carrier ‘Flyeasy’ in May, using two leased Airbus aircraft.

“Flyeasy is planning to launch commercially by May with two A319s. We’ve wanted to create a network catering to the needs of the remotest corners of the country, with smaller turboprops, and also flying into longer routes. When the opportunity of Air Pegasus came, we thought it’s the right move, since cooperations, codeshares and strategic partnerships are the future of aviation,” Flyeasy Managing Director Rajesh Ebrahim said.

Both airlines will be distinct. While Air Pegasus will remain as a regional operator, initially focusing on South India, Flyeasy plans longer routes.

“We are looking at 74% stake in Air Pegasus. Initially, we will be investing a substantial sum to relaunch operations and certain debt servicing and restructuring, with the second stage meant for expansion,” Ebrahim said.

According to Thomas, the investment will first come in the form of debt, which will later become equity.