Sri Vijaya Puram, May 31: Weeks after the Andaman and Nicobar Islands lost their only direct international air link, the Airports Authority of India (AAI) has stepped in with a new incentive scheme aimed at reviving international connectivity to remote airports.
Sri Vijaya Puram has been included in a list of 13 underserved international airports where User Development Fees (UDF) will be fully waived for the first year, with phased reductions over the next two. The initiative is expected to lower per-flight operating costs by up to ₹1.5 lakh, making it more attractive for airlines to operate international routes to the archipelago.
The announcement comes just weeks after AirAsia Malaysia suspended its Kuala Lumpur–Sri Vijaya Puram route on April 10, 2025. The route, which was inaugurated in November 2024, had marked the first-ever international commercial flight connection for the islands. However, as The Wave Andaman reported, the service was discontinued after less than five months, with no public explanation offered by the airline.
Data from January 2025 showed that the service carried 1,250 inbound and 956 outbound passengers over 13 flights, resulting in occupancy rates of roughly 40–50%. While initial response was subdued, local industry stakeholders had viewed the service as a foundational step toward integrating the islands with Southeast Asia’s tourism and trade networks.
Despite earlier promises by the Andaman and Nicobar Administration to waive landing charges and reduce VAT on aviation fuel for international carriers, industry sources say these benefits had not been fully implemented by the time the service ended. In addition, logistical challenges such as limited fuel supply from Indian Oil in Sri Vijaya Puram meant that AirAsia reportedly refueled primarily in Malaysia, impacting the cost-efficiency of the route.
“Introducing international air connectivity to the islands is a long-awaited step in the right direction,” said Mohamed H. Jadwet, Chairman of the Indian Association of Tour Operators (IATO), Andaman Chapter, and a former president of the Andaman Chamber of Commerce and Industry. Jadwet, a respected voice in the region’s business and tourism sectors, emphasized that “foundational improvements, consistent support, and time are essential to building a sustainable international air corridor.”
The AAI’s incentive scheme has been welcomed by tourism and trade bodies, who see it as an opportunity to rebuild international connectivity. The focus now shifts to ensuring timely execution of these policy interventions and encouraging other international carriers to consider Sri Vijaya Puram as a viable destination.
The suspension of the Kuala Lumpur route has left Veer Savarkar International Airport without any operating international flights, despite recent upgrades to its infrastructure. Promotional campaigns launched in anticipation of rising foreign arrivals have also been paused indefinitely.
With no official word yet on the route’s reinstatement or alternative international services, the spotlight remains on whether the central and Union Territory governments will actively pursue new airline partnerships and address the structural barriers that led to the route’s collapse.