SpiceJet (SG, Delhi International) has yet to draw on any government-backed viability gap funding for its current Regional Connectivity Scheme (RCS/UDAN) routes, chief executive Ajay Singh has said.
The budget carrier was awarded six RCS routes during the first round of allotment in March last year and a further 20 during last week's second round.
"On UDAN, our philosophy at SpiceJet is that wherever viability gap funding (VGF) is not required, we will not take it because the government should use the money where it is required," Singh told the Press Trust of India in an interview. "So far this has proved to be right because all the sectors we are flying as yet are financially viable without that viability gap funding."
Commenting on the response seen thus far to SpiceJet's RCS services, Singh said operations had thus far proven to be a "big success" given the activation of commercial flights to previously unused or underutilized airfields.
During the most recent round of awards, the Indian government allocated 325 routes to various operators. Fixed-wing awardees include Alliance Air (India), Fly Hornbill, Star Air (India), Heritage Aviation, IndiGo Airlines, Jet Airways, Mehair, Pinnacle Air, SpiceJet, Turbo Aviation, TruJet, and Zoom Air (India) while for rotary-winged operations, those successful applicants include HeliGo Charters, Heritage Aviation, Pawan Hans Helicopters, and Skyone Airways.
