The Himachal Pradesh government has signed an MoU with Alliance Air to introduce daily flights connecting Delhi with Shimla and further linking the state capital to Dharamshala, according to a PTI report.
Officials say the move is intended to strengthen regional air connectivity while supporting the state's growing tourism sector.
The agreement will establish a direct air corridor between the national capital and key destinations in the hill state.
Improved connectivity is expected to make travel easier for tourists and business travellers while reducing dependence on long road journeys through mountainous terrain.
The flights will be operated using an ATR 42-600, which has a seating capacity of 48 passengers and is well-suited for short-haul regional operations and airports with shorter runways.
"The commercial operations are likely to start in the last week of April 2026. Both routes will be operated on 100 per cent Viability Gap Funding (VGF), with the entire cost borne by the state government as Grant-in-Aid to Alliance Air. Total annual VGF outgo was pegged at Rs 32.64 crore based on actual billing. The MoU is valid for 12 months from the date of commencement of operations," Director, Tourism & Civil Aviation Vivek Bhatia was quoted as saying.
Officials explained that the viability gap funding model will allow the airline to operate the routes despite limited passenger volumes that might otherwise make them commercially unviable.
Under this arrangement, the state government will compensate the airline for operational costs to ensure consistent flight services.
Direct air services linking Delhi, Shimla, and Dharamshala are expected to encourage greater tourist inflows, especially during peak travel seasons, while also improving travel convenience for residents.
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