Andhra Pradesh

TruJet to get ₹20 cr. as Viability Gap Funding

The State government has helped resume the TruJet airline services between Chennai, Kadapa and Vijayawada airports by providing the Viability Gap Funding (VGF) of around ₹20 crore for one more year as an extension to the Centre’s Regional Connectivity Scheme-UDAN which ended on May 1.

According to a G.O. issued by Infrastructure and Investment Special Chief Ssecretary R. Karikal Valaven on Sunday, the government has decided to provide financial support to the airline as an extension to the three-year agreement between the State, Centre and Airports Authority of India (AAI) entered in 2016.

With this, the TruJet will continue to operate on Chennai-Kadapa-Vijayawada and Vijayawada-Kadapa-Chennai routes.

The G.O. states that the airlines have informed that due to withdrawal of funds from the Central government, it was not willing to operate in the said sector from May 1 and accordingly the bookings were also closed. “The Airport Director, Kadapa had requested the government to support the TruJet Airlines to run flights on the Chennai- Kadapa -Chennai and Vijayawada -Kadapa-Vijayawada routes,” the G.O. added.


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Printable version | Jun 23, 2021 6:11:28 PM | https://www.thehindu.com/news/national/andhra-pradesh/trujet-to-get-20-cr-as-viability-gap-funding/article34574570.ece

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