Thai Air Asia has agreed to start Direct International Flights from Bhubaneswar’s Biju Patnaik International (BPI) Airport to the South East Asian Countries.
And in order to start such International Services from the Bhubaneswar Airport, the State Government has agreed to provide Subsidy Grant of Rs 1.70 Lakh per round trip for starting Air Service Operations from Bhubaneswar to Singapore, Bangkok and Kualalmpur.
Thai AirAsia is a joint venture of Malaysian low-fare airline AirAsia and Thailand’s Asia Aviation. It serves AirAsia’s regularly scheduled domestic and international flights from Bangkok and other cities in Thailand.
Thai Air Asia authorities have urged the State Government to finalize the Terms and Conditions of MoU as soon as possible, so that the International Airlines will be able to chalk out Plan of Operations as soon as possible.
Suresh Nair, General Manager India, Srilanka and Bangaladesh of Thai Air Asia has informed the State Government about its willingness to operate International Flights to South East Asian Countries.
In fact Odisha Government for quite some time requesting the Government of India to ask the International Airlines to start Air Service Operation between Bhubaneswar and South Asian Countries but Union Government took little interest in this regard.
The State Government has already reduced VAT on ATF to Zero Percent for direct International flights. And the State Government has now allowed reasonable Viability Gap Funding (VGF) in form of Subsidy Grant.
Now the State Government is fine-tuning the MoU conditions and soon both the parties will enter the Pact after which Thai Air Asia will start operations, said sources.