The State government has reportedly dropped the deal with Indigo airlines for the operation of the direct flight service between Vijayawada and Singapore. It was the first ever international air travel service from the city airport.
An agreement which was signed by Indigo and the Andhra Pradesh Airports Development Corporation Limited (APADCL), a special purpose vehicle of the A.P. government, for six months lapsed in the last week of June.
Even before that APADCL and Indigo with mutual consent to renew the agreement sought the clearance from the State government, considering that it needs at least six months to one year for an international sector to sustain.
However, the State government had reportedly refused to extend the agreement citing various reasons, including the poor passenger load factor, which was only around 50% on an average, and increasing burden of Viability Gap Funding (VGF), as per the State’s aviation policy.
The government has hired Indigo on the basis of paying up to ₹3 crore towards VGF when the load factor was less than 50%.
“The deal is over now,” said a senior official of APADCL when asked about the development.
Also, Indigo has apparently removed the direct flight service between the city and Singapore from its booking engine.
It is unclear whether the government would come up with a new proposal for an international service or get all required permissions from the Centre to pave the way for all airlines to operate international services without having to pay VGF.
TDP flays move
Meanwhile, the government’s decision has drawn flak from the leaders of the Telugu Desam Party.
Referring to the demolition of Praja Vedika and the cancellation of the Vijayawada-Singapore flight service, Vijayawada MP Kesineni Srinivas (Nani), on his official social media handles, commented that YSRCP government was for destruction of Amaravati and development of Hyderabad. He also posted the pictures of CM Y.S. Jagan Mohan Reddy and Telangana CM K. Chandrasekhar Rao.