Wednesday, August 15, 2018
IndiGo has come forward to operate bi-weekly services to Singapore responding to a tender call by the AP Airports Developments Corporation.
This takes the State’s ambitious plan of starting an international flight service from the airport in the capital Amaravati to step loser to fuition. The tendering process has been completed and the airlines came forward to fly on the new sector. The State government has in principle approved the deal and assured in the Viability Gap Funding. We are awaiting the formal approval and modalities from the government before signing the final agreement. Tentatively, the service will be launched on October 2.
According to its aviation policy, the State provides VGF if the airline fails to get at least 50% occupancy on the specified sector. ‘We are confident that every flight will have 60-70% occupancy and no funding may be required. But the VGF would take care of the losses, if any sid APADCL chief executive officer Virender Singh.
Once the agreement is signed, the timings of the scheduled flights would be decided. With the city airport not being included in the bilateral air service agreements by the Centre yet, the outset of international services got allegedly stalled and the Corporation has planned to run unscheduled chartered flights by hiring an airline that could run the business on its behalf. A domestic carrier could operate international services from Vijayawada without special permission.