Regional airline Air Pegasus, whose aircraft was taken back by lessors on Wednesday, denied reports that it had shut down operations, maintaining that the suspension of services was temporary.

Sources in the airline told BusinessLine that it was in talks with creditors to raise fresh funds, while also confirming that Elix Aero had repossessed its aircraft for non-payment of dues.

The airline, which needs ₹100 crore immediately, has been in talks with several lenders for some time now. Sources said discussions with a major Gulf carrier, with which Air Pegasus had signed a non-disclosure agreement, lay suspended.

Air Pegasus’ Managing Diretor Shyson Thomas has been one of the main votaries for differential charges for regional and national players. He had earlier told BusinessLine that high cost of operations and airport charges had forced regional players from expanding their network.

What the numbers say

Air Pegasus’ fleet consists of three ATRs 72-500s. Two more aircraft were expected to be inducted by December.

According to independent sources, the airline has a monthly liability of about ₹5 crore, and it earns an equivalent sum in revenues. The monthly leasing cost is ₹85 lakh.

Air Pegasus’ salary bill alone amounts to ₹1 crore a month, and its fuel bill accounts for 40 per cent of cost of operations. The airline was on recovery mode until it was hit by a cash crunch.

About 30 per cent of its sales came from booking, 40 per cent from online travel portals, about 10 per cent from ticket counters at airports, and the rest from corporate sales.

Air Pegasus had planned to expand operations pan-India with 50 aircraft in five years and regional hubs in metros.

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