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CST-LOGO - 2014-10.jpg
CST-ROUTE MAP - 2014-10
Formed and started operations in 2013. Domestic, regional & international, scheduled & charter, passenger & cargo jet airplane services.
Vijayawada (VGA) - 530009, India
Shiva Yogiswari Estates
# 59-13-34, Ramachandra Nagar, Vijayawada– 520008, India
INDIA (REPUBLIC OF INDIA) WAS ESTABLISHED IN 1947, IT COVERS AN AREA OF 3,287,590 SQ KM, ITS POPULATION IS 970 MILLION, ITS CAPITAL CITY IS NEW DELHI, AND ITS OFFICIAL LANGUAGES ARE HINDI AND ENGLISH.
February 2014: Embraer (EMB) got a significant boost to its new E-Jet E2 program when India’s Air Costa (CST) announced an agreement for 50 firm airplanes plus 50 purchase rights.
The firm deal, announced at the Singapore Airshow, covers 25 E190-E2s and 25 E195-E2s at a list price value of $2.94 billion. The purchase rights cover a further 25 E190-E2s and 25 E195-E2s.
Air Costa (CST) becomes the 1st Indian customer for the E2, which was launched 7 months ago at the 2013 Paris Air Show and which has logged 200 firm orders and 200 options including this deal.
Air Costa (CST) launched in October 2013 with 2 E170s flying point-to-point service to 6 cities, including Bangalore, Chennai, Hyderabad and Vijayawada. (CST) is part of the (LEPL) Group. It will lease 2 E190s from (GECAS) this month and then continue taking delivery of E190s from the lessor at a rate of about 4 a year until the E2s begin to be delivered in 2018.
Air Costa (CST) VP Corporate Finance, Vivek Choudhary said load factors were averaging 74% LF or higher and (CST) is focused on serving secondary, underserved cities. The carrier does not have any code share partners, but Choudhary said they would be “happy to explore” opportunities.
(CST) Chairman, Ramesh Lingamaneni said, “The E2s will give us right-sized seat capacity for us to cater to future target markets with unit costs that are competitive with larger re-engined, single-aisle airplanes.
The E2s will be powered by Pratt & Whitney (PRW) geared turbofans.
October 2014: Air Costa ((IATA) Code: LB, based at Vijayawada) (CST) is planning to expand its domestic network early next year ahead of a possible international début in 2018, (CST) Chairman, Ramesh Lingamaneni has said. "We are looking at operating pan-India flights by the 1st quarter of the next fiscal [year]. We have submitted our application for securing a pan-India flying license to the Directorate General of Civil Aviation (DGCA)."
India's "Financial Express" said (CST), which since its launch in October 2013 has focused on serving the country's southern regions, could receive the (DGCA)'s go-ahead as early as next month. Though it currently operates 2 E170s and 2 E190s, Air Costa (CST) plans to induct 4 leased airplanes each year until deliveries of its 1st of 25 E190-E2s and 25 E195-E2s from Embraer (EMB) begin. (CST) is also planning to construct a dedicated Maintenance Repair & Overhaul (MRO) facility at Vijayawada Airport.
To fund its expansion plans, Air Costa (CST) will be spun off from its holding company, the (LEPL) Group, into a separate company with an Initial Public Offering (IPO) likely due thereafter.
“Once the company is de-merged, we will explore options for raising funds, which may include tapping the capital market. This will help get us the right kind of valuation from investors,” Vivek Choudhary (CFO), said.
Air Costa (CST) currently operates 4 airplanes, and serves 2 countries, with 10 destinations, 20 routes and 36 daily flights.
May 2015: Air Costa (CST) has ordered 3 112-seat Embraer E190 airplanes, which will nearly double its fleet. (CST) currently operates 2 E170s and 2 E190s on around 35 regional flights a day from its home base and Chennai.
(CST) (CEO) L V S Rajasekhar said the new E190s will help (CST) retire the smaller E170s in a year or so, which would also coincide with the start of delivery of an existing order for 50 Embraer E2 airplanes. Air Costa (CST) placed the $2.9 billion E2 order in May last year.
(CST), which launched in late 2013, said it plans to extend the regional air travel business in its home state of Andhra Pradesh.
“Vijaywada is the capital of Andhra Pradesh. Earlier, we had some small issues in setting up a team here [rather than nearby Chennai or Hyderabad] but that is all sorted now,” Rajasekhar said.
(CST) plans to extend its route schedules and passenger tally with the addition of the new airplanes to help it move back into profitability after a -INR900 million/-$141 million loss in the last three quarters.
It plans to raise capital for the new airplanes through a sale of an undisclosed stake following the splitting off of its aviation operations from the parent (LEPL) Group.
August 2015: AirAsia India (AAI) and Air Costa (CST) have become the latest carriers in India to deploy (SITA) OnAir’s (AIRCOM) services. The technology will help them streamline their operations using (SITA) OnAir’s unique (VHF) network, which covers the whole of India. (SITA) OnAir also provides both airlines with (AIRCOM) FlightTracker so they can track flights in real time throughout their entire route network; flight tracking is a mandatory requirement for all Indian-based carriers.
September 2015: Air Costa ((IATA) Code: LB, (ICAO) Code: LEP, based at Vijayawada) (CST) is planning to expand its operational scope beyond its current regional limitations Chief Financial Officer (CFO), Vivek Choudhary has disclosed. Speaking to India's "Economic Times," Choudhary said (CST) had already made the relevant application to the Directorate General of Civil Aviation (DGCA).
Launched in 2012, Air Costa (CST)'s operations are restricted to India's Southern Region, whose confines includes the metros in and around Bangalore, Chennai, and Hyderabad. At present, India has 4 defined regions in which so-called "Regional Carriers" may operate: North, South, West, East/North-East. Each region coincides with an existing Flight Information Region (FIR) with its airports defined by the Airports Authority of India (AAI).
"We are keen on cities like Lucknow, Guwahati, Bhubaneswar, and Delhi International, among others. Many new players are focusing on Tier-II cities but our Unique Selling Point (USP) is that we have the 1st mover's advantage in many of these centers," Choudhary told the "Times of India" earlier this year
At present, Air Costa (CST) serves the S Indian cities of Ahmedabad, Hyderabad, Chennai, Bangalore, Coimbatore, Jaipur, Tirupati, Vijayawada, and Vishakhapatnam.
Air Costa (CST) currently operates 4 aircraft, and serves 1 country, with 9 destinations, 18 routes and 26 daily flights.
The airline placed a $2.94 billion order for 50 new Embraer aircraft at the 2014 Paris Air Show, including 25 E190-E2s and 25 E195-E2s.
Air Costa (CST) is in the process of adding more of these aircraft to its fleet as it adds destinations to its route map, and intends to add +6 more aircraft by the end of 2016, Babu said. In the long term, it intends to build its fleet to 25 aircraft by 2018.
February 2016: Air Costa ((IATA) Code: LB, based at Vijayawada) (CST) is set to place a repeat of its 2014 order with Embraer (EMB) (São José dos Campos) the Brazilian aircraft manufacturer's Chief Commercial Officer (CCO) John Slattery has told "Bloomberg" news.
In February 2014, (CST) placed an order for 50 E-Jets E2s with an additional 50 purchase rights. Broken down, the order includes 25 E190-E2s and 254 E195-E2s. The purchase rights are for an additional 25 E190-E2s and 25 E195-E2s bringing the overall order to 100 aircraft, if all options are exercised.
Air Costa (CST) currently operates 2 E190s and 1 E170. Based out of Vijayawada, (CST) currently serves cities in S India such as Bangalore International, Chennai, and Hyderabad International as well as key secondary cities in the North and NW of the country. Having recently been given regulatory approval to expand its operations throughout India, Air Costa (CST) now plans to link more under served markets with more additional metropolitan areas, as well as other secondary and tertiary business centers.
March 2017: The Indian aviation regulator (DGCA) has de-registered 2 aircraft left with the grounded airline Air Costa (cst).
According to sources, the Directorate General of Civil Aviation (DGCA) wrote to the airline that its 2 Embraer aircraft have been removed from the Civil Aircraft Register.
(CST), the Vijaywada-based airline has not flown since February and had canceled bookings till May because of cash crunch and financial issues with the aircraft lessors. The latest action by the (DGCA) will effectively allow lessors to take back the aircraft from Air Costa (CST), the sources said.
The airline has also not paid salary to its 450 employees since January resulting in an exodus of employees, including 40 pilots (FC).
The employees are also planning a protest at (CST)s headquarters in Vijaywada demanding payment of their salary.
(CST)'s monthly wage bill stands at around Rs 4 crore, the sources said.
E190-100LR (0217, VT-LPB) returned to (GECAS) (GEF) after lease. Sent to Celestial Aviation Trading.