Friday, May 07, 2021

Andhra Pradesh approves viability gap funding for TruJet

Regional carrier TruJet has secured Andhra Pradesh Government nod for viability gap funding (VGF) to continue its Chennai- Kadapa-Vijayawada and Vijayawada-Kadapa-Chennai routes for one more year starting from May 1, 2021, reports Hindu BusinessLine.

The State Cabinet approved a move to provide about INR 20 crore per year as VGF by the State government.

An MoU was signed between Government of Andhra Pradesh, Airports Authority of India and the Ministry of Civil Aviation in 2016 for implementation of Regional Connectivity Scheme (RCS). Following this, Trujet Airlines is operating at Kadapa Airport.

The operations of Chennai-Kadapa-Vijayawada and Vijayawada-Kadapa -Chennai sector closed from May 1, 2021, due to withdrawal of VGF from the Central government. About INR 19.89 crore is required as VGF for 144 RCS seat per flight for the proposed sector. Therefore, the Government decided to extend VGF of INR 20 crore per year. 


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