Four bids for Northeast regional airline

Four bids for Northeast regional airline

Shillong: Even as the Indian aviation industry is experiencing rough weather with defaults on payment of jet fuel charges and layoffs, as many as four airlines, including state-run Alliance Air, have bid for operating a regional air carrier for the Northeast.

The bids came following a third tender floated by the North Eastern Council (NEC), which closed on 30 October, officials of the regional planning body said.

The council is now in the process of examining the tenders before deciding on which company to rope in for the proposed dedicated service for the region.

Officials said the process is likely to be completed by the end of November.

This is the third time that NEC has floated the tender. The earlier two had failed as the companies did not comply with the norms.

Three companies had made bids in the second tender, but all were rejected on grounds that they did not meet the technical criteria as stated in the bid documents.

The NEC plans to run a dedicated airline in the Northeast linking all important cities and towns in the region. About 12 new airports have been planned in addition to the existing 11.

Concerns over economic viability have kept companies away from the project even as the NEC announced that the selected airline would get subsidy from the Council.