In a significant development for air travellers, the Maharashtra government has taken a crucial step aimed at ensuring better travel facilities, with the state Cabinet approving the proposal to provide a subsidy of Rs 3,240 for each seat on Solapur-Mumbai and Solapur-Pune air routes. This facility will be available at a discounted rate of Rs 3240 per seat, which will cover 100 per cent of the operating cost of the service. This scheme by the state government will be implemented for one year and will be managed in line with the Centre's UDAN (Ude Desh Ka Aam Naagrik) scheme.
Star Air to get this government assistance
The airline company Star Air will get this government assistance, which operates flights between Solapur-Mumbai and Solapur-Pune. The government has kept a budget outlay of Rs 17.97 crore to promote Solapur-Mumbai and Solapur-Pune air routes. This current move will significantly reduce air fares on the Mumbai-Solapur and Solapur-Pune routes.
According to the Maharashtra government’s cabinet decision, "The state government will provide VGF (viability gap funding) subsidy of Rs 3240 per seat with a total budget of Rs 17.9 crore for one year. After one year, Solapur airport will come under the UDAN scheme, and thereafter, the state government will subsidise 20 per cent of travel fare as per UDAN scheme guidelines, and viability gap funding will be discontinued."
Under the UDAN scheme, airlines are required to sell 50 per cent of seats at a fixed rate (around Rs 2,500 per hour of flight) with subsidy, while the remaining seats are available at standard market rates.
UDAN scheme in Maharashtra
Moreover, under the UDAN scheme in Maharashtra, flights have already started operating on the Mumbai-Nanded, Nashik-Delhi, Nanded-Hyderabad, Kolhapur-Hyderabad and Kolhapur-Bangalore routes. This scheme has made significant contributions to air connectivity, tourism and employment in small cities.
In a similar development, FLY91, which is a regional air carrier, earlier announced flight services connecting Solapur with Mumbai as well as Goa.