Bhubaneswar: Suspension of air services from Biju Patnaik International Airport (BPIA) to 3 domestic destinations looms large with the viability gap funding (VGF) pact for these locations set to lapse soon. The 3 destinations are Dehradun, Indore and Port Blair.Recently, the international flight to Abu Dhabi suspended operations because of VGF, and Dubai and Singapore may resume after March, with the govt recently extending the VGF tenure for the 2 routes, officials said.
Under the new destination policy approved by the govt in Oct 2024 to connect to more domestic destinations across India, it offered VGF. According to the policy, the VGF is offered for the first 6 months since commencement of service and is extended for another 6 months, considering the performance. In the case of the 3 domestic destinations, whose VGF agreement is set to expire in March, flights may be suspended. Flights to these 3 destinations commenced in Feb 2025.“The govt may or may not renew the VGF pact, but the operator Indigo is likely to take its aircraft for use in other destinations, considering the fact that it is set to downsize its fleet after the DGCA stricture. However, there is still time. The govt is in discussion with the carrier,” a govt officer, on condition of anonymity, said.Biju Patnaik International Airport (BPIA) sources said except Port Blair, the 2 destinations, Dehradun and Indore, have no issue of low passenger footfall. “The passenger footfall was quite encouraging on both flights. The routes are commercially viable. It is up to the airline and govt to take a call,” said an officer from the airport.Under VGF, the domestic destinations with aircraft having the capacity to accommodate passengers between 50 and 180 are eligible to get VGF of Rs 5 lakh per round trip.After the domestic flights started operating under VGF, there was a dip in passenger footfall in May last year, but once it came to Oct, it took a vertical rise, raising hope. “The govt can’t always continue to run VGF, considering the fact that the routes are giving profit. The airline invariably should operate to gain passenger confidence,” said Sanjib Guru, a frequent flier.
