Indigo Suspends Services To Kadapa!

IndiGo Airlines is set to halt its flight operations to Kadapa starting September 15 due to the non-payment of agreed-upon funds. The airline’s decision comes in response to the breach of an agreement between the AP Airports Development Corporation Limited and IndiGo. The accord stipulated that the state government would provide IndiGo with an annual sum of Rs. 20 crores as Viability Gap Funding (VGF) to sustain flight services between Kadapa, following a six-month hiatus caused by Trujet’s suspension of operations.

After the agreement between IndiGo and APADCL was established, IndiGo initiated flight services to these destinations from March 27, 2022. However, owing to the state government’s failure to fulfill its commitment of providing the stipulated VGF, IndiGo has made repeated appeals through letters and has ultimately chosen to suspend its Kadapa flights starting September 1. Consequently, the airline will cease online ticket sales for these routes.

Recently, representatives from IndiGo held discussions with YSR District Collector Vijayarama Raju to address the matter. Following assurances from the collector that measures would be taken to expedite the release of funds, IndiGo decided to temporarily reopen online ticket sales until September 15. The airline’s future actions will depend on the evolving situation.

Notably, the UDAN scheme, a government initiative designed to encourage and support air services in smaller towns, has been terminated by the central government. This move has resulted in financial losses for IndiGo, compounding the challenges faced by the airline.