NEC may stop funding to Alliance Air

Update: 2010-09-15 00:00 GMT

SHILLONG, Nov 16 - The North Eastern Council (NEC) today said it may stop providing financial assistance to Alliance Air, a subsidiary of Air India, from April next year to help it cope with the losses incurred in providing air connectivity in the region.

�The NEC is likely to discontinue providing the viability gap funding (VGF) that it provides to a air carrier once the regional connectivity scheme (RCS) of the Ministry of Civil Aviation comes into effect from April 1, 2016,� NEC adviser PHK Singh said.

The VGF is included as part of RCS in which a traveller has to shell out an average of Rs 2,500 only for flying one hour in the region, Singh said while addressing the two-day North East Connectivity Summit here. � PTI

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