10/26/2017 Now, DGCA suspends Air Carnival's flying permit - Times of India

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Now, DGCA suspends Air Carnival's ying permit

PTI | Jun 18, 2017, 12.27 PM IST

Mumbai, Jun 18 () Aviation regulator DGCA has suspended the ying licence of Coimbatore-based Air Carnival, the third
regional airline to face such an action in the last eight months.

Air Carnival, which has not operated a single ight since early April, follows Air Pegasus and Air Costa, whose air operator
permits have also been suspended by the Directorate General of Civil Aviation (DGCA).

"The DGCA has suspended Air Operator Permit (AOP) of Air Carnival after it failed to satisfy the regulator in its response to the
show-cause notice," a DGCA ocial said.

The order for suspension of the ying licence of Air Carnival was issued earlier this month, the ocial said.

Air Carnival Chairman and Managing Director S Irudaya Nathan was not available for comments.

The suspension of ying permits of these regional carriers has come at a time when the government is moving ahead with the
ambitious regional air connectivity scheme that aims to connect unserved as well as under-served airports and make ying
more aordable.

As per section 15(2)(b) of Schedule XI of the Aircraft Rules 1937, DGCA may cancel or suspend permit of an airline for such
period as it thinks t, if it is satised that the holder of the permit has failed to establish a safe, ecient and reliable service.

However, before cancelling or suspending the ying permit of an operator, the regulator issues a show-cause notice with a two-
week time to respond.

Promoted by the CMC Group (Coimbatore Marine College), Air Carnival had started operations last July with with one ATR-72
aircraft.

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10/26/2017 Now, DGCA suspends Air Carnival's flying permit - Times of India

Before grounding operations, the regional carrier was operating 10 daily ights to three cities -- Chennai, Trichy and Tuticorin --
from Coimbatore.

Its lone aircraft has also been deregistered and taken away by the lessor, the ocial said.

The promoters had earlier inked a deal for a 100 per cent stake dilution to an angel investor for about Rs 70 crore, but the
transaction is yet to be completed, sources said.

Signicantly, only one carrier -- TrueJet -- of the four airlines which were operating under the regional AOP has survived in the
market in the last almost one year.

Bengaluru-based Air Pegasus was the rst one to cease operations on July 27 last year on account of fund crunch.

Consequently, the DGCA suspended its AOP in last November.

Though its promoters had announced a deal with another aviation rm FlyEasy in January and said the carrier would resume
services under the new management from March, the airline failed to take-o.

Then in February, another regional carrier, Vijaywada- based Air Costa announced suspension of its services initially for a few
days and later indenitely for want of cash and non-payment of dues to the aircraft lessors.

Its AOP was suspended last month, according to the DGCA ocial. IAS RAM ABM

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