Subsidy scheme to woo airlines

Hyderabad-based TruJet and Bengaluru-centered Air Pegasus bid to operate flights

Hyderabad-based TruJet and Bengaluru-centered Air Pegasus are reported to be strongly bidding for operating flight services through Puducherry.
The Puducherry Government had launched a rejigged subsidy scheme to woo airline operators after Air India's budget arm, Alliance Air, abruptly suspended its flights to Bengaluru after six months of operations, following a dispute over payments under the Viability Gap Funding scheme.
Proposals processed
"We're processing the proposals submitted by the operators and are negotiating with them over some changes in their offers," Chief Secretary Manoj Parida said.
What the Government is anxious about is entering into any sort of arrangement where an assured subsidy turns out to be a disincentive to the operator for aggressively pushing for ticket sales.
The Government is offering a subsidy of Rs. 2,500 per unsold seat with an annual cap of about Rs. 2 crore.
Sources say that one of the core aspects of a new deal would involve charting out a viable circuit that is attuned to tourist demand. Given the domestic tourist trends, a triangular circuit that involves Puducherry, Chennai and Bengaluru, is what the Government is looking at.
Indications are that Puducherry may not be able to restore air connectivity until at least a month from now.
"Even if we are to seal a deal, I don't foresee flights resuming before January end,' Mr. Parida said.
“As of now the deadline for the Government subsidy is already over. We are examining the proposals submitted by the two airline operators and hope to reach a decision in a week’s time. The Government is also committed to have a binding contract with private operators for flight operations in future,” Mihir Vardhan, Secretary to Tourism told The Hindu.
Alliance Air was operating flights to and from Bengaluru on its 48-seater ATR 42-320 on all days of the week except Wednesdays.
Prior to that, Puducherry airport was operational was when SpiceJet had flights to and from Bengaluru for just over a year, from January 2013 to January 2014.
The industries sector has reiterated the need for air connectivity, especially in view of Puducherry’s Smart City aspirations.
Source: http://www.thehindu.com

Comments

Post a Comment

Popular posts from this blog

Vistara Domestic Premium Economy vs. Economy – Is The Upgrade Worth It?

Economy on Vistara As one of only two  full-service carriers  in India, Vistara offers a high-quality economy product. On its A320, which used on most domestic routes, it offers 18-inch wide seats with a pitch of 29-30 inches. While this does sound standard, the well-padded seats and adjustable headrest make for a much more comfortable offering than its low-cost competitors. The seats also offer an acceptable 3″ recline. In terms of service, Vistara is one of the few airlines offering hot meals on domestic routes (minus short routes under an hour). All economy passengers, except those booked on Economy Lite fares, receive a meal along with hot or cold beverages. From personal experience, the meals are good and enough for domestic hops. For those traveling on Lite fares, only complimentary hot beverages are available. Vistara also has a small buy-on-board menu, which features packaged snacks and drinks, along with some hot instant meals. Originally, the airline served all passenger’s me
Read more

Why the Airbus A340 Has A Middle Landing Gear

Image
The  Airbus A340  was specially designed for long haul flying and had something not seen with other widebody aircraft flying today. It was a unique middle landing gear that allowed the plane to take off with heavier loads and carry more fuel for its four hungry engines. What is the middle landing gear? If you have ever looked carefully at a picture of an A340 (or if you are lucky, in real life), you might have noticed an extra landing gear on the belly in the middle of the plane. Here it is on a Virgin Atlantic  Airbus A340-600  to the rear of the aircraft. Looking at the bottom of an A340 you’ll see that there are already two other sets of landing gears under the wings, why would an aircraft need a third in the middle? Why some A340s have the middle landing gear Plain and simple, the extra landing gear allows the A340 aircraft to have a higher MTOW (maximum take-off weight). This means more passengers and cargo, plus more fuel to go a longer distance. Perfect for t
Read more

Preparing To Start Domestic Flight Operations Within A Week: Civil Aviation Minister Hardeep Puri

The domestic flight operations are likely to resume within a week, says Union Civil Aviation Minister  Hardeep Singh Puri . The commercial flight operations remain suspended since March 24 after the announcement of nationwide lockdown to contain the spread of coronavirus. In an interview with  Outlook ’s  Preetha Nair , the Union Minister also talks about the government’s massive plan to evacuate stranded Indians and the logistical challenges involved. He also says a decision on operating flights between green zones of the country will soon be taken. You have hinted that the commercial flight operations are set to begin after May 15 in a calibrated way. Can you elaborate? We are preparing to start domestic flight operations even before May 15. My effort will be to try and move in the direction of starting it very soon. I can’t put a date on it because when you are planning evacuation operations, you need the co-operation of the state governments. In order to open up domestic civil avia
Read more