Will Odisha Govt’s Second Attempt To Push Local Air Travel Via India One Air Take Off?

There is good news both for the Government of India UDAN scheme and Government of Odisha’s sustained effort to link its inaccessible airports.  With a view to boost inter-state and intra-state travel the Naveen Patnaik’s administration is making air travel affordable for both the government officers and local citizens. Towards this flight tickets on 9-seater UDAN flights are capped at Rs 2500 per ticket for 500-600 km travel. This pricing will bring in a multiplier effect, boost tourism, regional growth vis a vis Odisha economy. The UDAN maiden flight Bhubaneswar-Jeypur-Vizag is expected to take off any time soon. The Odisha government has roped in the Ahmedabad-based regional airline India One Air. This company has already secured an operating licence to fly the Odisha sector from DGCA.  According to Prasanna Pradhan, Bhubaneswar Airport Director this initiative will meet with success as most seats will be filled by the state government officials. Once the subsidized air travel takes off, UDAN flight capacity will be increased to 18-seater. This new initiative comes against the backdrop of Odisha government’s failed efforts a few years back. By definition the airline industry’s success depends on several factors, the most important being ATF pricing, occupancy ratio and punctuality. What will work this time will be the viability gap funding; 80% will be shared by the Aviation Ministry and 20% by the state government. Besides, GST will not be levied in certain sectors.