Air India says operations to Shimla financially not viable

THE AIRLINES TOLD SC THAT IT NEEDS PARTIAL FUNDING FROM THE HIMACHAL PRADESH GOVT AS IT IS ALREADY RUNNING INTO LOSSES

Flight operations to Shimla are unlikely to commence in the near future, despite the airport being ready, as Air India expressed its inability to operate on the Delhi-Chandigarh-Shimla route due to commercial infeasibility.

The government-owned Air India informed the Supreme Court that it needs partial funding from the Himachal Pradesh government since it is already running into losses and “is thriving on equity infusion” from the Centre.

Appearing before a bench headed by Chief Justice JS Khehar, Air India’s counsel said that in view of Himachal Pradesh’s topography, ATR-42 was a suitable plane to fly to Shimla. But, the airline did not have the aircraft. Its wholly-owned subsidiary Alliance Air Limited had the planes, but they were already engaged in the North-East and Andaman and Nicobar.

If Air India operated on this route, it would have to take planes from international airlines or a domestic private airline on lease for which viability gap funding was needed from the state government as the number of passengers plying on the route weren’t that high.

The Air India counsel told the bench that the airline might start flights to Shimla under the new civil aviation policy Udan - a regional connectivity scheme, after which the bench sought to know what kind of funding the airline wanted.

Airports Authority of India (AAI) counsel, Ashwarya Sinha, opposed Air India’s argument and its request to seek funding. On its part AAI has said the Shimla airport was fit to accommodate ATR-42 aircraft.

But, the bench gave time to Air India to come back and inform the court as to when can it start the air service and posted the matter for further hearing to April end.

SC is hearing Air India’s plea against the Himachal Pradesh high court order to start scheduled flights on trial basis between Delhi and Shimla. In earlier hearings, the top court had taken strong note of lack of connectivity to Shimla and other hill regions.