Air Pegasus cancels operations indefinitely due to cash crunch
The company denied the reports that it had shut down operations, maintaining that the suspension of services were temporary.
Regional airline in South India, Air Pegasus on Wednesday suspended its operations indefinitely due to severe cash crunch, Sameer Dixit of Zee Business reports.
The airline cancelled all scheduled flights causing inconvenience to passengers and sending alarm bells ringing in the aviation ministry.
Launched in April last year, Decor Aviation-promoted Air Pegasus operates to 16 sectors with Banglore as its hub. It has a fleet of three ATR 72 aircraft.
According to a source, "The airline has defaulted on payments to aircraft leasing companies who want take back their planes".
The company denied the reports that it had shut down operations, maintaining that the suspension of services were temporary, The Hindu reported.
As per a PTI report, the carrier operates flights from Bengaluru to at least seven destinations in South India. It has services to Chennai, Cuddapah, Hubli, Madurai, Mangalore, Puducherry, and Trivandrum, as per latest data available with DGCA.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.