Odisha Invites Tiger Air

Odisha Government has informed the Subsidiary of Singapore Airlines Limited, Tiger Air, that it will be given preference

to operate direct international flight from Bhubaneswar to Singapore at

Rs.1.70 Lakhs per Round Trip.

Accordingly the Singapore based International Airlines, Tiger Air has been invited to finalize terms and conditions with the State Government to operate

direct flights from Bhubaneswar to Singapore.

Established in 2004, Tiger Air is a leading no-frills airline that offers affordable travel options and a seamless customer experience.

With a fleet of Airbus A320-family aircraft, averaging about five years of age, Tiger Air operates flights to 40 destinations across

Asia such as Singapore, Bangladesh, China, Hong Kong, India, Indonesia, Macau,

Malaysia, Maldives, Myanmar, Philippines, Taiwan, Thailand, and Vietnam.

In order to push direct International Flight from Bhubaneswar to Foreign Soil, Odisha Government has earlier decided to provide Grant to the Airlines and to bear the Viability Gap Funding (VGF).

Providing Subsidy Grant as VGF was to help out the International Airlines as there is

little traffic directly from Bhubaneswar to Foreign Soil. So with the State’s support some of the Airways Majors had shown

interest in playing their flights from Odisha.

While International Airlines like Silk Air, Tiger Air and Air Asia have applied to the State Government to avail such Subsidies to run their flights to Singapore and Bangkok, Tiger Air has been chosen as preferred one.

As the lowest offer was Rs.1.70 Lakh per round trip, accordingly Department of

General Administration (DoGA) has intimated Tiger Air authorities to come for further consultation with the Negotiating

Committee to finalize other terms and conditions of Memorandum of

Understanding (MoU).

While Government of India declared Biju Patnaik Airport an International One since

20 September, 2012 and existing old terminal has been renovated for facilitating International Airlines, there are hardly any direct flights taking off from Bhubaneswar

to International Destinations.

Odisha Government requested the Government of India to operate direct

International flights from Bhubaneswar to any foreign destinations in the Middle East

or south Asian countries from Bhubaneswar.

The Government also agreed that even if a hopping flight, the passengers can remain seated in the aircraft, either at New Delhi, Kolkata or Mumbai as the case may be and

the same Aircraft can transport the passengers to the foreign disembarking

station. Similarly the return journey can be arranged

Accordingly, the State Government had reduced Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) to Zero for International Flights

But this is not happening now; however present International Flight is being

operated on Hub and Spoke Model, making New Delhi as the Hub. So the present

arrangement cannot be termed an International Flight.

So the State Government has decided to go for providing subsidy to the airlines, so that tourists can fly directly to Singapore and Bangkok, said sources.

This will also boost Tourism Industry in the State and more foreign tourists will be able to visit this Eastern State, said officials.

As the State Government is taking up suo-moto initiative to have direct International Flights from Bhubaneswar to South Asian Countries, by providing subsidy Grant as

VGF, it is expected that the Government of India will reimburse the same to the State

Government, said a senior official.

Recently IndiGO Airlines has decided to make Bhubaneswar airport as a Base

Station, which will not only increase the activities in the airport round the clock, but

also provide flight during night hours.

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