Under the Ude Desh ka Aam Nagrik (UDAN) scheme, the first regional flight, was flagged off between Shimla and Delhi from Jubbarhatti.
"UDAN Scheme is going to help tourism sector in Himachal Pradesh," PM tweeted
During his day-long visit to the Shimla Modi underscored the thrust on keeping the air fares within the reach of the middle class.
"My dream was to see a person who wears a 'hawai chappal' to fly on the 'hawai jahaz' or plane," Modi said in his address.
He said the UDAN scheme has made flights cheaper than taxi fare.
"The lives of the middle class are being transformed and their aspirations are increasing," Modi said and added-"Earlier, aviation was considered to be the domain of a select few. That has changed now."
"Tier-2 & Tier-3 cities are becoming growth engines. If aviation connectivity is enhanced in these places, it will be beneficial," PM said.
"The aviation sector in India is filled with opportunities," Modi said.
"The lives of the middle class are being transformed and their aspirations are increasing. Given the right chance they can do wonders" PM said.
This was PM's third visit to Himachal Pradesh and the first to the state capital since he became the Prime Minister in 2014.
Interestingly state assembly elections are due in HP later this year.
Fare
Air India subsidiary Alliance Air has put the fare at Rs 2,036. It will operate between Delhi-Shimla.