A direct air service between Navi Mumbai International Airport (NMIA) and Sindhudurg’s Chipi Airport could soon bring the two destinations within about an hour of flying, with the Maharashtra government inviting airlines to operate the route under the Centre’s UDAN regional connectivity scheme.
The Maharashtra Airport Development Company Ltd (MADC), the state’s nodal agency, has issued a request for proposal (RFP) seeking commercial airlines for the direct service. To make the route financially viable, the state has offered 100% viability gap funding (VGF) for eligible seats.
The proposed connection is aimed at improving access between the Mumbai Metropolitan Region and the Konkan coast, supporting tourism, business and regional economic activity. Earlier efforts to sustain direct flights between the two destinations reportedly struggled to achieve commercially viable operations without government support.
State Offers Full VGF Support
Under the proposal, the government will provide 100% VGF support for 50% of seats on Category-2 aircraft with 40-80 seats. For larger Category-3 aircraft with more than 80 seats, the support will cover 38 seats.
MADC’s tender documents propose a maximum passenger fare of Rs 3,580 for the 374-km NMIA-Sindhudurg journey and Rs 3,735 for the 388-km return sector. Financial support has been capped at ₹6,370 per seat.
Airlines will be selected through a Least Cost Based Selection (LCBS) process, with the contract expected to go to the qualified bidder seeking the lowest VGF amount per seat.
The selected operator will be responsible for commercial operations, including ground handling, passenger processing and e-ticketing. Airlines will also have to prioritise the sale of discounted RCS seats before releasing non-RCS inventory.
Performance Conditions for Airlines
The agreement includes penalties for service disruptions. If an aircraft remains grounded for more than two consecutive operational days without a replacement within 15 days, MADC can impose a penalty of Rs 1 lakh per operational day.
Airlines that fail to achieve 75% passenger occupancy for two consecutive months could face reductions in VGF support and possible termination of the agreement.
Sindhudurg’s Chipi Airport, developed and operated by IRB Infrastructure, is licensed to handle Airbus A321 aircraft. The airport can currently accommodate three Code-C aircraft and has additional parking facilities under construction.
The proposed flight link is expected to strengthen air connectivity between Navi Mumbai and the Konkan region while creating an easier travel option for tourists, businesses and residents.
Source: The Free Press Journal
