BPIA Domestic Flight Services to Three Key Destinations Face Uncertain Future
The Biju Patnaik International Airport (BPIA) in Bhubaneswar is on the brink of a significant connectivity setback, with air services to three domestic destinations—Dehradun, Indore, and Port Blair—potentially facing suspension. This looming crisis stems from the impending expiration of the viability gap funding (VGF) agreements for these routes, which are set to lapse soon, according to official sources.
VGF Policy and Its Impact on Flight Operations
Under the new destination policy approved by the government in October 2024, aimed at enhancing connectivity to more domestic locations across India, VGF was introduced as a financial support mechanism. The policy stipulates that VGF is provided for the initial six months following the commencement of service, with a possible extension for another six months based on performance evaluation. For the three domestic destinations in question, whose VGF agreements are due to expire in March 2025, this could lead to the suspension of flights if the funding is not renewed.
Flights to these destinations commenced in February 2025, and the uncertainty over VGF renewal has cast a shadow over their continuity. A government officer, speaking on condition of anonymity, revealed that while the government may or may not renew the VGF pact, the operator Indigo is likely to reallocate its aircraft to other routes. This decision is influenced by Indigo's plans to downsize its fleet following strictures from the Directorate General of Civil Aviation (DGCA). However, discussions between the government and the carrier are ongoing, leaving a glimmer of hope for resolution.
Passenger Footfall and Commercial Viability Concerns
Sources from BPIA indicated that, except for Port Blair, the destinations of Dehradun and Indore have not faced issues with low passenger footfall. In fact, the passenger numbers on these flights have been quite encouraging, suggesting that the routes are commercially viable. An airport officer emphasized that the decision ultimately rests with the airline and the government, highlighting the complex interplay between financial support and operational sustainability.
Under the VGF scheme, domestic destinations served by aircraft with a capacity to accommodate between 50 and 180 passengers are eligible to receive funding of Rs 5 lakh per round trip. This financial aid has played a crucial role in kickstarting services, but its temporary nature raises questions about long-term viability.
Historical Context and Future Prospects
The situation at BPIA is not isolated; recently, the international flight to Abu Dhabi suspended operations due to VGF issues, while services to Dubai and Singapore may resume after March, following a government extension of the VGF tenure for these routes. This pattern underscores the broader challenges in maintaining air connectivity under subsidy-dependent models.
After domestic flights began operating under VGF, there was a noticeable dip in passenger footfall in May of the previous year. However, by October, numbers saw a vertical rise, instilling hope for sustained growth. Sanjib Guru, a frequent flier, commented on the situation, stating, "The government 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." This sentiment reflects a growing call for airlines to transition towards self-sufficiency once routes prove profitable.
As the deadline approaches, stakeholders are closely monitoring developments, with the potential suspension of flights to Dehradun, Indore, and Port Blair serving as a critical test case for the sustainability of VGF-supported air services in India's evolving aviation landscape.
