The regional government of the Indian state of Assam is ready to launch a subsidy programme covering flights out the state's largest city, Guwahati, to South East Asia, The Economic Times reported on January 16.
Assam's Chief Minister Sarbananda Sonowal has requested the central Indian government to approve the programme which has already been earmarked up to INR1 billion (USD15.65 million) per annum for a period of up to three years. The state hopes to recover this money through higher inflows of investors and tourists.
While the details of the programme are still subject to negotiations between the regional and central governments, its general principles are expected to be broadly similar to the domestic Regional Connectivity Scheme (RCS, also known as UDAN). The carriers eligible for the so-called viability gap funding will likely be chosen on the basis of the amount of subsidy asked for, with preference given to the airlines that ask for the lowest level of support.
The Economic Times suggests that although the scheme will mostly cater to Indian carriers, subsidised tickets will be also available to foreign nationals.
According to the ch-aviation capacity module, Drukair (KB, Paro) is currently the only airline connecting Guwahati with South East Asia. The Bhutanese carrier operates a 2x weekly Paro-Guwahati-Bangkok Suvarnabhumi service using its A319-100 aircraft.
Guwahati is served by all major Indian carriers, including IndiGo Airlines, SpiceJet, Air India, Jet Airways, and AirAsia India, but these airlines only operate domestic routes of the Assamese gateway.
