Overview
Air Costa was an Indian regional airline headquartered in Vijayawada, Andhra Pradesh. The carrier operated scheduled passenger services connecting tier-II and tier-III cities in India, using a fleet of Embraer regional jets. It was promoted by the LEPL Group, a diversified business house with interests in infrastructure, real estate, and education.
| Type | Regional airline |
|---|---|
| Headquarters | Vijayawada, Andhra Pradesh, India |
| Hub | Chennai International Airport |
| Secondary base | Rajiv Gandhi International Airport, Hyderabad |
| Parent | LEPL Group |
| Fleet type | Embraer E170 and E190 |
| Status | Ceased operations |
Background
Air Costa was launched as part of the Indian government's effort to encourage regional connectivity. It was incorporated under LEPL Projects Limited, a Vijayawada-based group. The airline positioned itself as a full-service regional carrier, distinguishing itself from low-cost competitors by offering single-class jet service to underserved cities in southern and central India.
History
Launch
The airline began commercial operations in October 2013, with its inaugural services linking Vijayawada with cities such as Bengaluru, Hyderabad, Chennai, and Visakhapatnam. Chennai was developed as the principal operating hub.
Expansion
Air Costa progressively expanded its network to include destinations such as Jaipur, Ahmedabad, Tirupati, Coimbatore, and Kolkata. It inducted Embraer E170 aircraft initially and later added the larger Embraer E190 to its fleet to support longer regional sectors.
Scheduled operator permit
The airline applied to the Directorate General of Civil Aviation (DGCA) for a national scheduled operator permit, which would have allowed it to operate beyond regional boundaries and on international routes after meeting the requisite norms.
Decline and closure
Air Costa faced sustained financial difficulties, including aircraft lease and salary obligations, and suspended operations in early 2017. The DGCA subsequently took action regarding its scheduled operator status, and the carrier did not return to service. Insolvency proceedings followed at the National Company Law Tribunal.
Fleet
During its operational years, Air Costa operated a small fleet of Brazilian-built Embraer regional jets:
- Embraer E170 — used for thinner regional routes.
- Embraer E190 — deployed on longer and higher-density sectors.
Significance
Air Costa was among a small group of Indian regional carriers that attempted to serve cities outside the metropolitan trunk-route network using regional jets rather than turboprops. Its rise and closure are often cited in discussions of the challenges of regional aviation viability in India, a context that later shaped the design of the Government of India's UDAN regional connectivity scheme.
Related topics
- Aviation in India
- UDAN regional connectivity scheme
- Directorate General of Civil Aviation
- Vijayawada
- Chennai International Airport
- Embraer E-Jet family
- List of defunct airlines of India
References
- Wikidata entity: Q15731846
- Directorate General of Civil Aviation, Government of India.