Sunday, August 14, 2016

State to provide subsidy for running int'l flights

Bhubaneswar: In order to push direct international flights from Bhubaneswar to foreign soil, the Odisha Government has decided to provide subsidy to airlines.

Senior officials reveal that such a proposal has been received green signal of Chief Minister Naveen Patnaik as several international operators have shown keen interest to start direct flights from the Bhubaneswar airport as the State Government bears the Viability Gap Funding (VGF).

Providing subsidy grant as VGF would help international airlines as there is little traffic directly from Bhubaneswar to foreign countries. Airlines like Silk Air, Tiger Air and Air Asia have applied to the State Government to avail such subsidy to run their flights to Singapore and Bangkok.

Now, the State Government would hold discussions with the international players and decide the most economical proposal received from these three airlines, said sources in the Government.

While the Government of India declared the Bhubaneswar airport an international one on September 20, 2012 and the existing old terminal has been renovated for facilitating international airlines, there are hardly any direct flights from Bhubaneswar to international destinations.

The Odisha Government has requested the Central Government to operate direct international flights from Bhubaneswar to any destinations in the Middle East or South Asian countries.
14/08/16 Daily Pioneer

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