New Delhi: Keen to put their small towns and cities on the country’s aviation map, several state governments have flocked to state-run Air India requesting for flights to far-flung areas offering viability gap funding (VGF) for air services launched by the national carrier.
Some of the states and Union territories (UTs) that have already tied up with Air India for operating flights on commercially unviable routes are Karnataka, West Bengal, Pondicherry and Port Blair.
The public sector airline has also started flights to five different destinations in the northeast region in a win-win deal with state governments.
“We are in talks with Himachal Pradesh and Maharashtra also for launching flights on unprofitable routes. We will make an arrangement that will benefit both the sides. The model is working well,” a senior airline official told Financial Chronicle. “It will help ensure intra-connectivity in states where air connectivity is low,” he added.
Air India has brought many city-pairs in its flight schedule covering Bangalore-Pondicherry, Kolkata-Durgapur, Vizag-Port Blair and Bangalore-Cochin-Agatti in the domestic network partnering with states. It is likely to launch flight on Delhi-Shimla route shortly.
02/06/15 Nirbhay Kumar/mydigitalfc.com
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Some of the states and Union territories (UTs) that have already tied up with Air India for operating flights on commercially unviable routes are Karnataka, West Bengal, Pondicherry and Port Blair.
The public sector airline has also started flights to five different destinations in the northeast region in a win-win deal with state governments.
“We are in talks with Himachal Pradesh and Maharashtra also for launching flights on unprofitable routes. We will make an arrangement that will benefit both the sides. The model is working well,” a senior airline official told Financial Chronicle. “It will help ensure intra-connectivity in states where air connectivity is low,” he added.
Air India has brought many city-pairs in its flight schedule covering Bangalore-Pondicherry, Kolkata-Durgapur, Vizag-Port Blair and Bangalore-Cochin-Agatti in the domestic network partnering with states. It is likely to launch flight on Delhi-Shimla route shortly.
02/06/15 Nirbhay Kumar/mydigitalfc.com