The no-frill Air Costa will initially fly to Bangalore, Chennai, Hyderabad and Vijayawada and later to some secondary cities in the north.
Captain Babu, the CEO of Air Costa, said the airline would use a fleet of Embraer E Jets and the plan is to link under-served markets in India with more direct flights.
"We have acquired two aircraft on lease while one has been purchased. We are awaiting one final licence from DGCA and would launch operations from July-end," Babu told PTI while refusing to give details about investment.
"We are committed to further growth in the Indian market by increasing our fleet and starting new routes over medium term," Lingamaneni said in a release.
Promoted by Vijayawada-based construction group LEPL, Air Costa will have its headquarters at Vijayawada.