As many as 11 firms have expressed interest to start dedicated regional airline services for the north east sector under the regional airlines permit notified by the ministry of civil aviation in August, minister for development of north east region Mani Shankar Aiyar said.

At least 12 new airports will be operationalised in the region by the end of 2008 and 25 new airports would come up over the period of the 11th five year plan, he added. The ministry is aiming for as many as 400 flights every month internally connecting the region by the end of 2009.

“The companies that have submitted expressions of interest will be invited for bidding in October after due process is concluded,” Aiyar said. “All I can say now is that Alliance Air is one of the firms which has expressed interest,” he added.

The airlines would be subsidized by the funds from the North East council, he informed. The new dedicated regional airlines are expected to start operations by July 1 next year. At present there are 11 operational airports of which Guwahati is the only international airport as of April 2002 with a flight to Bangkok. The other airports include Dibrugarh, Tejpur, Jorhat, Silchar, Dimapur, Imphal, Agartala, Aizawal and Bagdogra.

Domestic air connections to the North East are provided by the Indian Airlines, Jet Airways among others. In August this year, the civil aviation minister announced a number of subsidies for airlines interested in operating in the regional space under a separate regional air carrier permit. The carriers must have a minimum start-up capital of Rs 30 crore if operating three aircraft with a take-off mass of over 40,000 kg.

Those operating below this threshold need a paid-up capital of Rs 12 crore, and have to add Rs 4 crore into the paid-up capital for each additional aircraft, subject to a maximum of Rs 20 crore.

Aircraft with a take-off mass of less than 40,000 kg are not required to pay landing charges at airports. These regional carriers can operate flights from airports in their designated region to all airports in any other region, except metro airports but they are allowed to connect to metros in the region they operate in.

If a regional airline wants to operate to a city that doesn’t have an operational airport, the civil aviation ministry can ask the Airports Authority of India (AAI) to make one operational.

Three South India-based airlines – Chennai-based Air Dravida, Kochi-based Emric Air and Star Aviation – had applied to the government for a licence to launch regional airlines in early September. Aviation turbine fuel for smaller aircraft attracts a uniform sales tax of only 4% throughout the country, and with all the sops, analysts expect that regional airlines should meet with success.