The state government has rolled back its policy of providing subsidies
for unsold seats on flights operating from smaller airports - like those
in Cooch Behar and Andal - after realising the inefficacy of such
payouts to make a route viable.
"The experiment of doling out subsidies, in the form of viability gap funding, to make a route viable has failed," a government official said today. "Such a move will never have the desired outcome."
The official added the government could chip in with 20 per cent subsidy provided the Centre coughed up the rest. "There is no question of the state government alone subsidising flights from smaller airports."
Viability gap funding - an agreement between an airline and a government or an airport, wherein the carrier is paid for unsold seats on a particular route - didn't take off in at least two airports in Bengal, Andal and Cooch Behar.
To Read the News in Full 12/01/17 Sanjay Mandal/The Telegraph
"The experiment of doling out subsidies, in the form of viability gap funding, to make a route viable has failed," a government official said today. "Such a move will never have the desired outcome."
The official added the government could chip in with 20 per cent subsidy provided the Centre coughed up the rest. "There is no question of the state government alone subsidising flights from smaller airports."
Viability gap funding - an agreement between an airline and a government or an airport, wherein the carrier is paid for unsold seats on a particular route - didn't take off in at least two airports in Bengal, Andal and Cooch Behar.
To Read the News in Full 12/01/17 Sanjay Mandal/The Telegraph
No comments:
Post a Comment