BHUBANESWAR: The Odisha government on Tuesday terminated the intra-state air service provided by Air Odisha Aviation Private Limited in the state.
Cancelling the Air Service Operation Agreement (AOA) with the domestic flight operator, the government asked to remove its aircraft from the government hangar within 15 days of issue of termination letter.
“The AOA is terminated with effect from 1st June 2016 and the Performance Security deposited by the operator with the CMGI (Centre For Modernising Government Initiative) is forfeited,” said a letter issued to Asutosh Pani, Chief Executive Officer of Air Odisha.
The operator was directed to remove its aircraft from government hanger and vacate the premises of government hanger used for running its office within 15 days from the date of issue of this order, it added.
Earlier, the government had served a show cause notice after it found that the operator didn’t fulfil the terms and condition mentioned in the agreement.
The Air Odisha started flying to three places of the state from the capital city on January 19 flagged off by Chief Minister Naveen Patnaik. It was running daily flight to Jharsuguda, Rourkela, Jeypore and Sambalpur from Bhubaneswar.