Aviation

Maharashtra to incentivise airlines connecting Tier 2 cities

MUMBAI

Looking to boost connectivity to smaller cities, the Maharashtra government is willing to offer incentives to airlines, but has no plans to start services on its own or to buy an airline.

The ministry of civil aviation on Tuesday said that permission for taking over a loss making airlines can be considered by a state government, on the basis of applicable regulations and guidelines, reports Mint.

Though the Maharashtra government has no such plans, it is willing to underwrite seats of airlines to ensure viability of business proposals to connect smaller cities such as Kolhapur, Sholapur, Nasik, Aurangabad, Amravati, Nanded, Ratnagiri and Jalgaon with bigger cities such as Mumbai, Pune and Nagpur, according to two government officials.

“We are ready to offer compensation to airline operator if they don’t get 75% booking on their flights,” said one of the officials cited above.

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