TruJet for around £ 20 Cr. as profitability gap financing

The state government helped resume TruJet airlines between Chennai, Kadapa and Vijayawada airports by providing approximately £ 20 billion of Viability Gap Funding (VGF) for another year as an extension of the centre’s regional connectivity program ( UDAN) which ended May 1.

According to a GO issued on Sunday by the Special Envoy for Infrastructure and Investment, R. Karikal Valaven, the government decided to provide financial support to the airline as an extension of the three-year contract between the Indian state, the center and the Indian Airport Authority (AAI) in 2016 .

This means that the TruJet will continue to be used on the Chennai-Kadapa-Vijayawada and Vijayawada-Kadapa-Chennai routes.

According to the GO, the airlines have announced that due to the withdrawal of funds from the central government as of May 1, they were not ready to operate in this sector, and bookings were accordingly closed. “The airport director Kadapa asked the government to help TruJet Airlines operate flights on the Chennai-Kadapa-Chennai and Vijayawada-Kadapa-Vijayawada routes,” the GO added.

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