Air Pegasus (PPL, Bangalore Int'l) is planning to resume operations in early 2018 following the signing of a partnership agreement with Dawn Aviation. Managing Director Shyson Thomas told India's BusinessLine newspaper that Dawn Aviation will gain a 60% stake in Air Pegasus in return for INR200 million rupee (USD3.1 million). Of that total, INR80 million has so far been paid in.

“With the funds in place, the banks have assured us that they will restructure the debt and release more funds for the working capital needs,” Thomas said adding that the bulk of its debt has now been settled.

As it stands, the carrier has now signed an agreement with Amur Aviation for the lease of one ATR72-500, msn 733. A further two of the type are due to deliver from Vietnam Airlines (VN, Hanoi) later on in 2018. Pending government approval and the reissuance of its Air Operator's Permit (AOP) by the Indian Directorate General of Civil Aviation (DGCA), Air Pegasus expects to resume commercial flight operations during the first half of January.

Thomas said Air Pegasus would serve Kochi Int'l, Madurai, Hubli and Vijayawada initially. It will also apply to operate routes under India's Regional Connectivity Scheme (RCS).

Previous plans to resume operations via a tie-up with fellow Indian carrier FlyEasy (Bangalore Int'l) fell through after Air Pegasus failed to receive the requisite funds, Thomas added.