Rs 32 Crore Subsidy Secures Alliance Air's Shimla Flights Resumption

The Himachal Pradesh Government has approved a significant financial package. This viability gap funding (VGF) aims to restore air connectivity to Shimla. The state cabinet cleared the proposal for Alliance Air Aviation Ltd to resume daily services.

Alliance Air will operate flights seven days a week. The service covers the Delhi-Shimla-Dharamsala sector. This route has long been considered economically unviable.

Financial Commitment and Operational Details

Viability Gap Funding Approved

The state government will provide approximately Rs 32 crore annually. This funding covers Alliance Air operational losses. The VGF ensures regular operations on the Delhi-Shimla and Shimla-Dharamsala routes. Industries Minister Harshwardhan Chauhan confirmed the decision. He stated air connectivity is crucial for the state's capital.

Aircraft and Airport Challenges

The airline will deploy a 46-seater aircraft for these flights. This is likely the 46-seater ATR 42 aircraft variant. The ATR turboprop is suited for challenging airfields. Jubbarhatti Airport (SLV) near Shimla is a high-altitude, table-top runway. Its short length and terrain make operations difficult. The airport has remained largely inactive for a prolonged period. Previous attempts to sustain flights failed due to poor commercial viability.

Impact on Regional Connectivity

This government support is a critical step. It addresses the persistent concern over the state capital’s lack of air access. Reliable air services are essential for boosting tourism. They also improve access to the hill state for official travel.

Regional air connectivity in India often requires such subsidies. The VGF model bridges the gap between operating costs and revenue. This is necessary for connecting remote or challenging locations. Himachal Pradesh is also pressing the Centre for subsidised air fares. They seek a model similar to that used in Jammu and Kashmir.

• Risk: Sustained service depends entirely on continued state financial support.
• Opportunity: The VGF model secures a vital link for the tourism-dependent state.

In a related development, heli-taxi services are also expected to resume soon. These will operate from the more accessible Dhalli heliport. This offers an alternative to the more distant Jubbarhatti Airport. Aviation regulators like the Directorate General of Civil Aviation (DGCA) oversee all such operations. They ensure adherence to strict air safety standards.

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