The Modi government is set to launch a new airline based out of Guwahati which will connect all state capitals in the Northeast. This move will give boost to connectivity in Northeast India.
According to a report in India Times, the company will be a subsidiary of Pawan Hans Helicopters Ltd and is likely to operate a fleet of 6 fixed-wing planes and 5 helicopters. The subsidiary, with an equity base of Rs 150 crore will see an ownership of 51 per cent by Pawan Hans Helicopters Ltd and the rest by the North Eastern Council (NEC).
The decision to create a new airline was taken at a meeting of all state Chief Ministers from the Northeast and Department of North Eastern Region Minister Jitendra Singh. “A proposal has come to the aviation ministry and has also been sent to NEC for approval,” said a government official.
This is the first time that the government will launch a subsidiary to provide connectivity within the Northeast. Currently, Alliance Air provides air connectivity to select cities in the region. It is based on the viability gap funding from the government. Analysts believe that the model is a successful one and will bring in money for Pawan Hans.