Government to launch new airline for Northeast connectivity

Undeterred by the poor performance of national carrier Air India, the government will start a new airline based out of Guwahati which would connect all state capitals in the Northeast, according to a report in The Economic Times.

The new airline will be a subsidiary of Pawan Hans Helicopters Ltd and is likely to operate a fleet of six fixed-wing planes and five helicopters, the report said.

Pawan Hans Helicopters Ltd will own 51 per cent of the subsidiary which will have an equity base of Rs 150 crore. The rest will be owned by North Eastern Council (NEC).

Department of North Eastern Region minister Jitendra Singh took this decision after meeting chief ministers from all Northeastern states.

The move is expected to boost connectivity in the region, as presently only Alliance Air, a regional arm of Air India, offers air connectivity to cities in the Northeast.