Bhubaneswar Airport Faces More Flight Suspensions as VGF Agreements Expire
Bhubaneswar Airport Flight Suspensions Loom as VGF Ends

Bhubaneswar Airport Braces for Further Flight Disruptions as Key Routes Face Suspension

Concerns are mounting at Biju Patnaik International Airport (BPIA) in Bhubaneswar as the specter of additional flight suspensions grows. Tickets for two more domestic routes—Kochi and Goa—have ceased to appear for bookings beyond March, while airlines have yet to submit their summer schedules to the airport authorities. This development follows the already confirmed suspension of services to Port Blair, Lucknow, and Jaipur, which have been removed from the flight roster.

Viability Gap Funding Expiry Triggers Route Uncertainty

The potential suspensions are closely tied to the expiration of viability gap funding (VGF) agreements under the government's new destination policy, approved in October 2024. This policy aims to enhance connectivity to more domestic destinations across India by offering financial support. Specifically, VGF is provided for the initial six months after a service commences, with an extension possible for another six months based on performance metrics.

In the cases of Goa and Kochi, whose VGF agreements have lapsed, flight operations are now in jeopardy. An airport officer highlighted the situation, stating, "The airlines have not submitted the summer schedules. There is still time they may submit. But we are getting to know that there is no booking beyond March for the two destinations, which indicates suspension of service."

Airlines' Operational Shifts and Passenger Footfall Challenges

Currently, Air India Express operates a daily direct flight to Kochi, while IndiGo manages the route to Goa. Sources indicate that the government's decision on renewing the VGF pact remains uncertain. However, IndiGo is reportedly considering reallocating its aircraft to other destinations, especially as the airline plans to downsize its fleet following strictures from the Directorate General of Civil Aviation (DGCA).

BPIA sources revealed that flights to Dehradun and Indore did not suffer from low passenger footfall, unlike those to Port Blair, Kochi, and Goa. Under the VGF scheme, domestic destinations with aircraft capacities ranging from 50 to 180 passengers are eligible for funding of Rs 5 lakh per round trip.

Impact on Domestic Connectivity and Infrastructure Growth

The suspension of flights to Goa, Kochi, Indore, and Dehradun would bring the total number of disconnected domestic destinations to seven, severely destabilizing the regional air travel network. This comes despite significant advancements in airport infrastructure. Hotelier and frequent flier Debashis Patnaik expressed concern, noting, "The domestic scenario is getting destabilized though the airport infrastructure is growing in leaps and bounds. The government can't always continue to run VGF, considering the fact that the routes are giving profit."

Historical data shows a dip in passenger footfall in May last year after domestic flights began operating under VGF, but a sharp recovery occurred in October. This volatility underscores the challenges in sustaining air connectivity without ongoing financial incentives.

In summary, Bhubaneswar's airport is at a critical juncture, with multiple domestic routes hanging in the balance due to expiring VGF agreements and delayed airline schedules, threatening to undermine recent infrastructure investments and passenger convenience.