After less than five months of intra-state airline operations, the Odisha government on Tuesday decided to terminate the air service provided by Air Odisha Aviation Private Ltd.
The state General Administration (department) has cancelled the contract with Air Odisha and asked to remove its aircraft from the government hangars within 15 days of issue of termination letter.
"The Air Service Operation Agreement (AOA) is terminated with effect from 1st June 2016 and the performance security deposited by the operator with the Centre For Modernising Government Initiative (CMGI) is forfeited," said a letter to Air Odisha CEO Asutosh Pani.
The state government cancelled the service, which had begun from Bhubaneshwar to three other places in the state on January 19, as the carrier didn't fulfil the terms and condition mentioned in the agreement.
According to an official, the government had issued a show cause notice asking the aircraft carrier why AOA will not be terminated for violation of the conditions.
Earlier, Air Odisha had discontinued its service, complaining that the government did not pay the subsidy amount as promised in the contract. Pani had also sought intervention of Chief Minister Naveen Patnaik.
More From This Section
--IANS
cd/vd