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Sunday, 24 August 2014

North Eastern Council agrees to provide viability gap funding to Alliance Air

New Delhi: The seven sister states of India, having arguably one of the worst road links in the country and a doddering air network, can finally expect better air connectivity between them, as the northeastern states have agreed to fund Alliance Air's losses in operating these flights.

The viability of these loss-making routes will improve with the North Eastern Council agreeing to offer viability gap funding (VGF) to Alliance Air, the regional arm of Air India, that connects most destinations in the north-east.


"The North Eastern Council has agreed to provide VGF for these flights and the MoU would be signed soon, perhaps as early as next week," said a senior ministry official, who did not wish to be identified.
Read news in full 21/08/14 Mihir Mishra/Economic Times

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