In order to have direct international flights to-and-fro the Biju Patnaik International Airport (BPIA), the State Government has decided to provide subsidy support to international airlines.
Chief Minister Naveen Patnaik has approved such a proposal and, accordingly, the General Administration Department has issued ‘Expression of Interest’ (EoI) for starting air service operation from Bhubaneswar to Singapore, Bangkok and Kuala lumpur and quoted the subsidy grant they expect from the State Government.
The State Government has taken decision after its request to the Union Government to ask the international airlines to start air service operation between Bhubaneswar and South Asian Countries was not materialised, according to sources.
The State Government desires to invite international airlines to operate flights from Bhubaneswar to the above destinations at least two or three times a week, preferably on alternate days.
Since most of the flights connecting Singapore with major airports in Europe, Middle East, South East Asian and American countries leave Changi Airport at Singapore in the forenoon; the flights from Bhubaneswar may start around midnight so as to reach Singapore early in the morning.
Bhubaneswar-bound flights may reach the BPI Airport late in the evening. Such a flight schedule would attract people from Odisha to avail this route so as to catch outbound flights to the other cities of the world. Besides, this would encourage international tourists to come to Odisha to explore this eastern State of India as a tourist destination, feel senior officers in the GA Department.
The State Government has already reduced VAT on ATF to zero percent for direct International flights. And the State Government has also decided to provide reasonable Viability Gap Funding (VGF) in form of subsidy grant.
Recently Silk Air, Tiger Air and others expressed their interest to run international flights from the BPIA. However, in order to make it competitive among the international airlines, the State Government has floated EoI for wider participation.
State Government has decided to provide subsidy to those airlines that would cover an aerial distance of more than 1,000 Nautical Miles, which is more than 1,800 km. This means, international flights to Dhaka or Colombo will not be subsidised.
Secondly, if an international operator is already operating between any of the cities in India to Singapore or Bangkok or Kuala lumpur and wants a halt at Bhubaneswar, then a reasonable subsidy grant would be given, provided the operator reserves at least 30 per cent of the seats both ways for Bhubaneswar bound/outbound passengers.
According to the decision, full subsidy would be given to regular flights irrespective of the passenger flow.