Showing posts with label Trujet May 2021. Show all posts
Showing posts with label Trujet May 2021. Show all posts

Monday, May 17, 2021

TrueJet gets govt approval for viability gap funding

Vijayawada: The state government on Sunday issued an order providing viability gap funding (VGF) to the tune of Rs 20 crore per year for continuation of TruJet Airlines flights connecting  Chennai, Kadapa and Vijayawada, for one year starting May 1.

A Memorandum of Understanding was signed between the state government, Airport Authority of India (AAI) and the MoCA on June 19 last year for implementation of the Regional Connectivity Scheme of Government of India. Kadapa Airport was notified as an “Regional Connectivity Scheme Airport “ under the Regional Connectivity Scheme (RCS)-UDAN. Airport Director, Kadapa informed that Trujet Airlines is operating at Kadapa Airport under RCS. 

He said the air ticket bookings were closed for the Chennai-Kadapa-Chennai and Vijayawada-Kadapa Vijayawada sectors w.e.f May 1 due to withdrawal of VGF to Trujet, as the VGF support under RCS-UDAN Scheme is limited to only 3 years from the date of flight operations in such route. The same was discussed with Airlines Station Manager, Trujet Airlines, Kadapa.  They informed that due to withdrawal of funds from the Centre, the airline was not willing to operate in the aforesaid sector. 

17/05/21 New Indian Express


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. 

06/05/21 TravelBizMonitor.com