MI-172 Helicopter Service in Sikkim Suspended Due to ₹20 Crore Loss

MI-172 Helicopter Service in Sikkim Suspended Due to ₹20 Crore Loss

The MI-172 helicopter service in Sikkim has once again been grounded, following significant financial losses. The 26-seater helicopter, which had only resumed operations last year, has now been officially taken out of service, according to the Chief Secretary of the Tourism and Civil Aviation Department.

Currently, the state will continue with the smaller 10-seater helicopter service. The MI-172 had been leased through an agreement signed on February 19, 2021, between the Sikkim government and the Sikkim Tourism Development Corporation. Operations were managed by SkyOne Airways, with the objective of improving regional connectivity and promoting tourism.

However, the service struggled with consistently low passenger turnout. Despite its large capacity, the helicopter often flew with minimal occupancy, resulting in a financial burden for the state. In the past year alone, the government incurred losses close to ₹20 crore in maintaining the service.

While official explanations mention weather-related disruptions, sources within the government acknowledged that the primary reasons were low demand and unsustainable losses. The North Sikkim route, especially between Lachen and Lachung, failed to attract enough passengers despite targeted promotional efforts.

In light of these challenges, the state has decided to halt the MI-172 service and continue operations with the smaller, more viable aircraft. Authorities also noted that they remain open to introducing more appropriate helicopter models in the future, depending on demand and economic feasibility.