Starting Monday, the direct flight services between Vijayawada to Singapore will not be operating, as the YSR Congress government has not shown any interest in renewing the Viability Gap Funding (VGF) agreement with Indigo Airliines.
The agreement was signed by the previous Telugu Desam Party government headed by N Chandrababu Naidu, who had gone out of the way to appease the Singapore government which is playing a key role in the development of Amaravati.
The Singapore government not only prepared the master plan for the new capital city of Andhra Pradesh, but also got the contract for development of the core capital.
As a result, the officials from Singapore used to make frequent flying to Vijayawada in the last three years.
Now, with Jagan at the helm of affairs in Andhra Pradesh government, he has shown least interest in Singapore. He is also planning to cancel the agreement with Singapore consortium for the capital development.
So, the Singapore officials have stopped coming to Vijayawada. As a result, there are no takers for Indigo flights to that country and the government has decided not to renew the Viability Gap Funding (VGF) agreement.
The Indigo Airlines has informed the AP Airports Development Authorities in this regard. The previous state government had entered the MoU with the Indigo Airlines by giving viability assurance. The MoU period lapsed on Sunday.
Indigo Airlines has also stopped ticket bookings immediately after the government's decision.
The air service operator was requested by the previous government to run the services directly from Vijayawada airport to Singapore.
The government had also provided viability assurance to Indigo Airlines to get international airport image to AP's capital Amaravati.
