IndiGo Airlines to stop services to Kadapa from September 15 over non-payment of VGF

KADAPA: IndiGo Airlines has announced that it will discontinue flight services to Kadapa due to non-payment of funds as per the agreement.

According to the agreement between AP Airports Development Corporation Limited and IndiGo, the state government had agreed to provide Rs. 20 crores annually to IndiGo as a Viability Gap Funding (VGF) to run the services between Kadapa after the Trujet had stopped the services for six months in the past. TDP chief N Chandrababu Naidu had written a letter to Chief Minister YS Jagan Mohan Reddy seeking flight services from Kadapa to Hyderabad, Vijayawada, Chennai, and Bangalore under UDAN.

Following the agreement between IndiGo and APADCL, IndiGo began operating flights to these destinations on March 27, 2022. However, due to the government's failure to provide the promised VGF, IndiGo has sent multiple letters and has now decided to stop flights from Kadapa after September 1, ceasing online ticket sales.

Meanwhile, the representatives from IndiGo recently met with YSR District Collector Vijayarama Raju to discuss the issue. As the collector assured them that steps would be taken to release the funds soon, the IndiGo on Tuesday decided to temporarily resume online ticket sales until September 15. IndiGo representatives stated that further decisions would depend on the situation.

It is learned that the UDAN scheme, introduced by the central government, which provides incentives and assistance for operating air services in smaller towns, has now been discontinued by the central government incurring losses to IndiGo.