The North Eastern Council (NEC) today said it may stop providing financial assistance to Alliance Air, a subsidiary of Air India, from April next year to help it cope with the losses incurred in providing air connectivity in the region.
"The NEC is likely to discontinue providing the viability gap funding (VGF) that it provides to a air carrier once the Regional Connectivity Scheme (RCS) of the Ministry of Civil Aviation comes into effect from April 1, 2016," NEC advisor P H K Singh said.
The VGF is included as part of RCS in which a traveller has to shell out an average of Rs 2,500 only for flying one hour in the region, Singh said while addressing at the two-day North East Connectivity summit here.
Currently, the NEC is paying Rs 47 crore as VGF to Alliance Air that connects most destinations in the region.
The RCS, which is scheduled to come into effect on April 1 next year, is part of the Revised Draft National Civil Aviation Policy released on October 30.
16/11/15 PTI/Business Standard
To Read the News in full at Source, Click the Headline
"The NEC is likely to discontinue providing the viability gap funding (VGF) that it provides to a air carrier once the Regional Connectivity Scheme (RCS) of the Ministry of Civil Aviation comes into effect from April 1, 2016," NEC advisor P H K Singh said.
The VGF is included as part of RCS in which a traveller has to shell out an average of Rs 2,500 only for flying one hour in the region, Singh said while addressing at the two-day North East Connectivity summit here.
Currently, the NEC is paying Rs 47 crore as VGF to Alliance Air that connects most destinations in the region.
The RCS, which is scheduled to come into effect on April 1 next year, is part of the Revised Draft National Civil Aviation Policy released on October 30.
16/11/15 PTI/Business Standard
