Wednesday, June 01, 2016

Govt asks Air Odisha to stop flying

Bhubaneswar: After less than five months of intra-state operation, the state government on Tuesday decided to terminate the air service by cancelling the contract with Air Odisha Aviation Private Limited.
The Air Odisha started flying to three places of the state from here on January 19 with chief minister inaugurating the maiden flight amid much fanfare. According to the government, the carrier didn't fulfill the terms and condition mentioned in the agreement.
The government's letter to the chief executive officer of Air Odisha Asutosh Pani said the Air Services Operation Agreement (AOA) was terminated from June 1 and the operator has to remove its aircraft from the government hangar within 15 days of issue of termination letter.
On May 26, the government had slapped show cause notice on the carrier asking it why AOA will not be terminated. "The explanation of the operator was not at all satisfactory and the carrier will have to forfeit the security deposit," said the letter.
On March 19, the carrier had sent a letter to the General Administration department intimating its difficulties to continue the operation. The carrier said it was not paid the subsidy amount as promised by the government in the contract.
31/05/16 Times of India
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