Acting tough against the Air Odisha Aviation Private limited for flouting the conditions of memorandum of understanding (MoU) by stopping its intra-State services without intimation, the State Government has served a show-cause notice to the private air carrier asking it to reply by March 26.
The General Administration Department (GAD) on Monday issued the notice to the private carrier for its unilateral decision to suspend services from Monday over non-payment of subsidy to it without informing the former which violates the conditions of the MoU signed between the two.
Sources in the GAD said of the pending `60 lakh dues in terms of subsidy claimed by the air carrier, the State Government had cleared 75 per cent.
Meanwhile, hours after getting the notice, the Air Odisha resumed its operation.
The carrier had stopped it services to Sambalpur and Rourkela on Saturday and had announced to stop the flights to Jeypore from Monday over non-payment of subsidy.
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 `222 per nautical mile with a cap on total subsidy of `8 crore annually.
Nine-seater flights had started operations to four cities like Jharsuguda, Rourkela, Sambalpur and Jeypore on January 19 from the city airport.