Bhubaneswar: At a time when the state government is claiming to boost air connectivity by going on a makeover spree of existing airstrips, there is a huge uncertainty over the future of the flights operating within the state.
Sources said the dilly-dallying state of affairs of the government has compelled the lone regional private flying company 'Air Odisha Aviation Private Limited' to shut down its operations, citing losses.
The company was supposed to fly aircraft within the state covering places like Bhubaneswar-Jharsuguda-Rourkela and Bhubaneswar-Jeypore. But it had to ground its nine-seater flight within one month.
The state government allegedly reneged on its promise to compensate the fare of at least four seats, in case they go vacant. The government had initially agreed to reimburse the fare of four seats, which would have cost Rs 4 crore a year. The government agreed to extend the support up to three years to sustain the air connectivity within the state.
"Since the meeting on April 23, the government has been changing its decision. It rejected the reimbursement plan of four seats and reduced it to three seats for two years, instead of three years. Then recently, it decided not to offer reimbursement benefits at all," said an official. Moreover, the government was charging Rs 5,000 for landing of the aircraft, which is very costly, he added.
24/09/13 Riyan Ramanath/Times of India
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Sources said the dilly-dallying state of affairs of the government has compelled the lone regional private flying company 'Air Odisha Aviation Private Limited' to shut down its operations, citing losses.
The company was supposed to fly aircraft within the state covering places like Bhubaneswar-Jharsuguda-Rourkela and Bhubaneswar-Jeypore. But it had to ground its nine-seater flight within one month.
The state government allegedly reneged on its promise to compensate the fare of at least four seats, in case they go vacant. The government had initially agreed to reimburse the fare of four seats, which would have cost Rs 4 crore a year. The government agreed to extend the support up to three years to sustain the air connectivity within the state.
"Since the meeting on April 23, the government has been changing its decision. It rejected the reimbursement plan of four seats and reduced it to three seats for two years, instead of three years. Then recently, it decided not to offer reimbursement benefits at all," said an official. Moreover, the government was charging Rs 5,000 for landing of the aircraft, which is very costly, he added.
24/09/13 Riyan Ramanath/Times of India
