Flyeasy to acquire up to 74 per cent stake in Air Pegasus

Bengaluru-based regional airline Flyeasy has signed an agreement with Air Pegasus to acquire up to 74 per cent stake in the latter for over Rs 700 million. The move is likely to help the grounded air carrier, Air Pegasus, restart operations from March 1, 2017. Consequently, while Air Pegasus will continue as a regional airline operating in Tier II and Tier III cities, Flyeasy will operate as a pan-Indian airline with an all-Airbus fleet and will launch commercially on May 2017, subject to the approval of its pan-Indian licence by the Ministry of Civil Aviation. Phase I of Air Pegasus’ investment plan entails a funding of around Rs 270 million, of which Rs 130 million will be for capital and Rs 140 million for restructuring its debts. Phase II investment, to be used for expansion, is expected to be to the tune of

Rs 600 million and will be a combination of both equity and debt.