Madhya Pradesh formula: Gujarat government to subsidize regional air service

Gandhinagar: Following the Madhya Pradesh model, the Gujarat government has offered to subsidize the private players who are interested in providing regional air services in the state. Well-placed Sachivalaya sources said, the model was first adopted in the neigbouring state recently, where the government offered to pay for three seats on an average for 16-seater small turbo prop aircrafts taking flights between selected spots, including Bhopal, Gwalior, Indore and Khajuraho.
"Earlier efforts to rope in private players failed to materialize because the private players found the cost of running short-distance flights too costly. This time, we have decided to subsidize the private players, though slightly changing the formula adopted by the Madhya Pradesh government. Under the formula, the government will be paying for specified seats per flight under a complex calculation which includes distance and the flight route", a senior official said.
23/05/12 Times of India

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Categories: Indian Aviation- In General May 2012, New May 2012