Air Costa was owned by Indian business company LEPL Group. The airline received a No-Objection Certificate (NOC) from the
Ministry of Civil Aviation in February 2012. The airline initially planned to start operations with a fleet of
Q400 aircraft but later announced its decision to acquire Embraer Jets at the
Paris Air Show in June 2013. Air Costa received its Air Operators' Permit (AOP) from the
Directorate General of Civil Aviation (DGCA) in September 2013. The airline commenced operations as a
regional airline in October 2013 using two
Embraer E-170 aircraft with the first flight taking off from its hub at
Chennai on 16 October 2013. The airline focused on connectivity between tier II and tier III cities in the country and has invested as of 2015. In September 2015, Air Costa, which held a regional airline's license, applied to the aviation regulator DGCA for its license to be upgraded to that of a national airline. Air Costa received a no-objection certificate from the civil aviation ministry for pan-India operations on 19 December 2015. Two Embraer E-190s were added by September 2015. Air Costa added one more E-190 in December 2015 and had plans to add three to five E-190 aircraft in its fleet in 2016. The airline had a 0.8% market share in the Indian domestic airline market as of February 2016. On 28 February 2017, Air Costa suspended operations until further notice stating financial difficulties regarding the lease of aircraft.
GECAS seized two of the airline's leased aircraft, while a third had already been returned to the lessor. ==Destinations==