Tuesday, October 27, 2015

Government Bid to Bring Puducherry Back on Aviation Map

Puducherry: The Union Territory government has initiated measures for resumption of flight operations from Puducherry Airport after Alliance Air, a subsidiary of Air India, suspended their operations abruptly in mid-October.

The government has offered to pay a Viability Gap Grant of `2 crore to Alliance Air for operation of daily flights to and from Bengaluru, Chief Secretary Manoj Parida told mediapersons here on Monday.

In a letter sent to the government on October 23, the operator had expressed its inability to operate flights unless the government removes the Viability Gap Grant ceiling of `2 crore annually and paid the amount for a period of six months for unsold seats.

Though there was no formal agreement between Alliance Air and Puducherry government, an understanding was reached with the operator that the government would provide the Viability Gap Grant of `1,000 per unsold seat, with a ceiling of `2 crore annually, said Parida.
27/10/15 New Indian Express
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