Sri Vijaya Puram, Jun 01: The Airports Authority of India has approved the mega incentive scheme to promote international connectivity at 13 airports (03 Major Airports and 10 non-major Airports).
Veer Savarkar International Airport Sri Vijaya Puram is also one of the major airports included in this scheme. This scheme will be applicable for the first three years of the operations to bridge the viability gap for the initial phase, which is a very crucial phase for the sustainability of operations. As per this scheme for the first year 100% UDF (User Development Fees) which is Rs 709/- per departing passenger will be waived off to the airline. For the second-year incentive will be 85% of UDF and for the third-year incentive will be 65% of UDF.
Considering the flight load of 180 passengers, the incentive scheme has the potential of saving Rs 1.28 lakhs per flight for the airlines, which is a significant amount to bridge the viability gap.
Veer Savarkar International Airport was designated as an international airport on 01.04.2007 and the first scheduled international flight was started on 16.11.2024 by Air Asia from Kuala Lumpur to Sri Vijaya Puram. But due to less passenger load the international operations were not viable for airlines and the international flight operations were stopped from 10.04.2025.
Airport Director Mr. Devender Yadav said that the incentive scheme for international flight operations by Airports Authority of India management is a very welcome move. It has ignited a new hope in the tourism community and significantly bridged the viability gap. To boost aviation in Andaman & Nicobar has always been the priority of Airports Authority of India, in the incentive scheme also the maximum incentives among the 13 airports provided to Veer Savarkar International Airport. We have learnt a lot of lessons from the previous international flight operations by Air Asia from Kuala Lumpur to Sri Vijaya Puram. We are better prepared for sustainable international flight operation with this incentive scheme and readiness to swing international cargo operations. Tourism is a joint collaborative initiative by many stakeholders, every small move by each stakeholder is having a big cumulative impact.
The Airport Director thanked AAI Management, Lieutenant Governor, Member of Parliament, Chief Secretary and Secretary Civil Aviation Andaman & Nicobar for jointly taking up the viability of international flight operations and achieving a significant breakthrough in it.
