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.