The airline will operate ATR 72-600 aircraft, a 70-seater all-economy class aircraft, on this route.
The subsidised fare on the Gwalior-Delhi leg of the journey will be Rs 1,830, for Gwalior-Indore it will be Rs 2,500 and for Indore-Gwalior it will be Rs 2,500, Air India said in a statement.
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The first flight under the scheme was launched on April 27 and was operated between Shimla and New Delhi by the Air India subsidiary.
Under the scheme, also known as UDAN or Ude Desh Ka Aam Nagrik, the government aims at connecting 45 unserved and under-served airports and make flying affordable by capping fares at Rs 2,500 per seat/hour.
Five airlines were awarded 128 routes under the scheme in March this year after a bidding process.
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