• Source:JND

The suspended air services connecting Delhi with Shimla and Dharamshala are set to resume once per-seat fares receive final approval. Alliance Air has proposed a fare of Rs 3,500 per seat for the Shimla-Dharamshala route, while the state government has approved a reduced fare of Rs 3,000. However, the fare for the Delhi-Shimla route is yet to be finalised. Air services will resume only after the fare structure approved by the state government receives clearance from the Union Ministry of Civil Aviation.

Alliance Air, a Government of India undertaking, had earlier proposed fares of Rs 6,000 per seat for the Delhi-Shimla route and Rs 3,500 per seat for Shimla-Dharamshala. In a cabinet meeting held on January 19, the Himachal Pradesh government approved Rs 31 crore as viability gap funding (VGF) to facilitate the resumption of air services. Over the past three years, the state has spent Rs 12 crore on VGF.

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According to official sources, the state government has accepted a reduction in the Shimla-Dharamshala fare to Rs 3,000 per seat, down from the Rs 3,500 proposed by the airline. No decision has yet been taken on the Delhi-Shimla fare.

Air services under UDAN scheme

The air services were discontinued on September 25, 2025, following the expiry of a three-year agreement between Alliance Air and the state government under the Regional Connectivity Scheme (UDAN). To restart operations, a fresh agreement will need to be signed. The central government will bear the subsidy for select seats on the Delhi-Shimla route.

Under the subsidy framework, 17 seats from Delhi to Shimla and 13 seats from Shimla to Delhi will be subsidised. For intra-state operations, the state government will provide subsidies for Alliance Air’s 48-seater aircraft.

All seats subsidised on Shimla-Dharamshala route

Once operations commence on the Shimla-Dharamshala route, all 48 seats will be subsidised through viability gap funding provided by the state government. Previously, fares on the Delhi-Shimla route were around Rs 3,300 per seat, but these could now rise to Rs 6,000. On the Shimla-Dharamshala sector, fares earlier ranged between Rs 1,214 and Rs 3,000 before being proposed at Rs 3,500 by Alliance Air.

Alliance Air was charging up to Rs 15,000 for non-subsidised seats on the Delhi-Shimla route. Over the past three years, the airline incurred an operational cost of Rs 6.70 lakh per day, which has now increased to Rs 7.90 lakh per day.

The central government has allocated Rs 27 crore for the repair and maintenance of the state’s three airports, with a warning that unutilised funds may be cut. Following the suspension of air services, Alliance Air redeployed its staff to Mumbai, Rewa, and Pithoragarh, and relocated both aircraft to Mumbai.

Rs 31 crore annual support from state

Chief Minister Sukhvinder Singh Sukhu said the state government has decided to operate regular flights on the Delhi–Shimla and Shimla-Dharamshala routes to strengthen air connectivity and boost tourism. The flights will operate throughout the week, with the state providing Rs 31 crore annually to ensure their sustainability.

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The Chief Minister added that tourism remains a key pillar of Himachal Pradesh’s economy, generating employment and self-employment opportunities, and the government is taking multiple steps to improve tourism infrastructure and services across the state.


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