Thai AirAsia now plans to start services to Bangkok from the Bhubaneswar airport after launching a daily flight from the Biju Patnaik international airport to Kuala Lumpur.
The flight service to Bangkok from Bhubaneswar airport is expected to be launched by March 2018. An MoU in this regard is likely to be signed between Odisha Tourism department and Thai AirAsia in December.
“Air India has also proposed to start international flights from Bhubaneswar. It has proposed to fly from Bhubaneswar to Bangkok via Gaya (Bihar),” said Ashok Chandra Panda, Odisha’s tourism minister.
Thai AirAsia is a joint venture of AirAsia and Thailand’s Asia Aviation. Sources said that Thai AirAsia is willing to launch flight operation to Bangkok from Bhubaneswar on condition of receiving Rs 1.70 lakh as subsidy per flight service.
International carriers who opt to operate flights to and from the city airport would enjoy full waiver from value added tax (VAT) on aviation turbine fuel (ATF).
The state cabinet had decided to slash VAT on ATF for such carriers to zero from five per cent to boost international air connectivity.