Grounded regional carrier Air Pegasus is expected to resume operations from March following Flyeasy agreeing to invest Rs 86 crore in a phased manner for majority stake purchase.
As part of the deal, to be signed on January 15, ABC Aviation and Training Services-led Flyeasy India would acquire 74 per cent stake in the cash-strapped airline while the rest 26 per cent would remain with its founder Shyson Thomas, a Flyeasy official said.
"We have already signed the LoI (letter of Intent) for acquiring 74 per cent take while the rest 26 per cent will remain with Shyson. The way things are going on, we will conclude the agreement on January 15 as I don't see any hurdle," Flyeasy group Chief Executive Officer Rajesh Ebrahhim told PTI.
Both Air Pegasus and Flyeasy are headquartered in Bengaluru.
Ebrahim said that Flyeasy would invest as much as Rs 86 crore in two tranches, Rs 26 crore and 60 crore, in reviving the carrier which remains grounded since July last year with its flying licence suspended.
"The investment is into two phases. The first phase investment is Rs 26 crore, of which Rs 13 core will be capital and the rest Rs 13 crore will be used to shave off some debt," he said.
The second phase of the investment would be to the tune of Rs 60 crore and it would be a mix of both debt and equity, Ebrahim said.
When contacted, Thomas, Air Pegasus Managing Director, said he was diluting majority stake in the carrier but added that the quantum had not yet been arrived at.
Before suspending operations on July 27 for an indefinite period, Air Pegasus flew from Bengaluru to at least seven destinations in southern India.
At present it does not have a single aircraft in the fleet as all three planes which it had leased for operations have been deregistered by the aviation regulator DGCA following the lessors petitioning it to do so after the airline defaulted on lease rentals.
As part of revamping the operation, Air Pegasus will induct 24 aircraft in the next four years, out of which six would be inducted this year, Ebrahim said.
Air Pegasus said in a press release that it has entered into a strategic partnership with Flyeasy India to revive its operations from March 1.
"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 all Airbus fleet." Thomas said in the release.
As part of revamping the operation, Air Pegasus will induct of 24 aircraft in the next four years out of which 6 will be inducted this year.
"We intend to build a strong network with Flyeasy operating into long thin routes and Air Pegasus connecting to tier 2 and 3 cities concentrating on the south initially. Strategic partnerships and codeshares will be the future of Indian aviation and I feel that we have moved in the right direction," Ebrahim said.
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