Himachal govt to pay Rs 32 cr a year to keep Shimla flights airborne

Decks have finally been cleared for the resumption of flights on the Shimla-Delhi-Dharamsala sector, with the Himachal Pradesh Government agreeing to provide viability gap funding to offset losses incurred by airlines on what has long been considered an uneconomical route.

The decision was taken at a meeting of the state Cabinet held here today. The Cabinet approved a proposal allowing Alliance Air Aviation Ltd to operate 46-seater aircraft on all seven days of the week on the Delhi-Shimla-Delhi and Shimla-Dharamsala-Shimla routes from the Jubbarhatti airport near Shimla.

Industries and Parliamentary Affairs Minister Harshwardhan Chauhan said the Cabinet had accorded its nod to provide viability gap funding as air connectivity with the national capital was crucial for the state. “The route is not economically viable and therefore the government has decided to extend financial support to ensure regular operations,” he said.

Under the arrangement, the state government will provide approximately Rs 32 crore annually to Alliance Air to cover operational losses on the Delhi-Shimla, Shimla-Dharamsala and Dharamsala-Delhi sectors.

Jubbarhatti airport has remained largely inactive for a prolonged period, as previous attempts to sustain flights failed due to poor commercial viability. High fares and irregular schedules made air travel unaffordable for most passengers, leading to repeated suspension of services. The absence of air connectivity from the state capital has been a persistent concern, particularly for tourism and official travel.

Himachal Pradesh has also been pressing the Centre to introduce subsidised air fares on the lines of Jammu and Kashmir and the northeastern states. Officials believe that reliable air services are critical for boosting tourism and improving access to the hill state.

In another development, heli-taxi services from the Dhalli heliport, located within the town limits, are likely to resume soon. Two aviation companies have expressed willingness to operate services from the heliport, offering a more accessible alternative to Jubbarhatti, which is around 14 km from Shimla.