Home BIG STORY Air Odisha stops services over subsidy non-payment

Air Odisha stops services over subsidy non-payment


Odisha Sun Times Bureau
Bhubaneswar, Mar 19:

Two months after launching intra-state air service, chartered air carrier Air Odisha Aviation Pvt Ltd has decided to ground its airlines from tomorrow in view of the non payment of subsidy and rebate on aviation turbine fuel (ATF) to it.

Air Odisha
Air Odisha

While the carrier stopped it services to Sambalpur and Rourkela today, it has decided to stop the flights to Jeypore tomorrow, Air Odisha sources said.

“As we are not getting the subsidy due from the government, we have decided to withdraw flight services. Today, the flights to Sambalpur and Rourkela have been withdrawn. The decision has been taken by the head office,” said Joseph Nayak, Operations Manager of Air Odisha Aviation Pvt Ltd.

Notably, the carrier had stopped its services to Jharsuguda three days after it began its operations here on January 22 as runway repair work was underway there.

“I would request the government to take necessary steps for resumption of air services,” BJP leader Pradeep Purohit said.

According to sources, the airline was getting subsidy from the state government on the basis of nautical miles it flies in a month. The price was fixed at Rs 222 per nautical miles with a cap on total subsidy of Rs 8 crore annually.

Besides, it was claiming a refund on VAT on the ATF imposed by the state government.

The nine-seater Air Odisha had started its operations from the Biju Patnaik International Airport (BPIA), Bhubaneswar to four cities – Jharsuguda, Rourkela, Sambalpur and Jeypore on January 19.