The Andhra Pradesh government accorded administrative sanction to the A.P. Airport Development Corporation Limited (AP-ADCL) for providing Viability Gap Funding (VGF) to the tune of approximately ₹3.06 crore to IndiGo Airlines for one month in advance for providing international connectivity between Vijayawada and Singapore.
As per G.O RT No. 156 issued on Tuesday by Principal Secretary (Infrastructure and Investment and CRDA) Ajay Jain, the government had approved the proposal for giving incentives to the flight operator i.e. IndiGo for operating two return flights per week basis on Vijayawada-Singapore route and vice-versa with an indicative ticket price of ₹18,881 per seat as return fare at a cost of ₹33.99 lakh for operation of two return flights per week i.e. nine flights per month at a cost of ₹3.06 crore for a period of six months.
The total cost for six months amounts to about ₹18.36 crore minus revenues. Accordingly, the ADCL has entered into the agreement with IndiGo and the ADCL MD & CEO had requested the government to provide a budget provision for VGF for ₹18.36 crore for six months.
The inaugural flight will take off on December 4.
