Stalled Indian start-up FlyEasy (Bengaluru International) has taken a giant leap towards the launch of operations following the signing of an agreement to acquire up to 74% of Air Pegasus (Bengaluru International), a stalled, albeit already certificated, scheduled operator.
Air Pegasus Managing Director Shyson Thomas said in a statement issued to the Indian press this week that while the final shareholdings had yet to be finalized, he would own the minority stake in the carrier.
Of the transaction valued at around INR870 million (USD12.7 million), INR270 million (USD4 million) will be used to both shore up working capital reserves and pay off debts. The remaining INR600 million (USD8.7 million) will be used for fleet and operational expansion.
As it stands, Air Pegasus, which suspends operations in July last year citing liquidity constraints, will resume flights from March 1, 2017, onwards. It aims to employ six unspecified aircraft by year-end.
In preparation for its launch, FlyEasy has applied to the Indian Ministry of Civil Aviation for a Pan-Indian Air Services Permit. It will presumably conduct flights using Air Pegasus's Air Operator's Permit (AOP) which, though suspended in November last year, can be reactivated.
"Air Pegasus will continue as a regional airline operating in tier 2 and tier 3 cities while FlyEasy airlines will operate as a pan India operator with an all Airbus fleet [A319-100s] and will have a commercial launch on May 2017," the statement said.
