Aerial endeavor initiated in Odisha

Aerial endeavor initiated in Odisha

Odisha's Aviation Sector Soars with New Destination Policy and MRO Facility

Odisha's aviation sector is experiencing a surge in growth, thanks to the state government's focus on financial incentives, airport infrastructure, and policies promoting expansion.

A key development is the Odisha government's investment in a Major Maintenance, Repair, and Overhaul (MRO) facility at Biju Patnaik International Airport (BPIA) in Bhubaneswar. This facility, the first of its kind in Eastern India, will service both domestic and international carriers, boost regional aviation, and create skilled employment opportunities. The government has approved an ₹80 crore subsidy and a ₹150 crore investment plan for this project [1][4][5].

The MRO facility aligns with broader aviation market growth trends in India, which is expected to become the third-largest aviation market globally. The global MRO market is forecasted to grow significantly, and Odisha's geographical position makes it a strategic hub benefiting from proximity to major flight routes [1][2].

While specific details on airport construction or upgradation projects besides the MRO facility were not explicitly mentioned in the search results, the establishment of a major MRO facility at BPIA suggests modernization and capability enhancement of airport infrastructure. Historically, Odisha’s aviation sector has evolved since 1936 with Biju Patnaik International Airport playing a central role [3].

The Odisha government's 'New Destination Policy (NDP)' is another significant initiative aimed at encouraging airlines to open new routes or to restore old connections. So far, 15 routes operated by Air India Express, IndiGo, and Star Air have been selected for financial assistance under Odisha's NDP [6]. The policy allows airlines to set ticket prices without a fare cap, making it a purely commercial operation.

One of the beneficiaries of the NDP is IndiaOne Air, whose Bhubaneswar-Jeypore flight completed three years on July 3. The airline, which operates 4,500 flights to Jeypore and has flown over 32,000 passengers till date, has seen significant success with the new intra-State route [7]. Star Air, another player in Odisha's aviation sector, is optimistic about its operations in the state and is launching a direct service between Jharsuguda and Bhubaneswar from August 16 [8].

The new destination policy has contributed to traffic growth at Bhubaneswar airport, with a 22% growth in traffic during the April-June period compared to the previous year [9]. The policy also aims to enhance regional accessibility and support economic and cultural ties within Odisha, as demonstrated by the new intra-State route between Jharsuguda and Bhubaneswar [10].

However, challenges persist for IndiaOne Air, such as high operating costs, rough weather conditions, and limited availability of Cessna Grand Caravan aircraft pilots and engineers [5]. The discontinuation of the central viability gap funding for the route is another worry for the airline [6]. Despite these challenges, the Odisha government has promised support to ensure continued operations of IndiaOne Air.

Ameya Joshi, Founder of aviation blog Network Thoughts, believes that the airport-driven scheme in Odisha could be a way forward for intra-State connectivity and in some cases, inter-State connectivity [11]. The Odisha government is also in discussions with various airlines to restore flights to Surat and start new flights to Gaya during the winter schedule [6].

In conclusion, Odisha's aviation sector is undergoing significant development with a strong focus on financial incentives, airport infrastructure, and policies promoting growth. The absence of detailed information on the NDP indicates either limited public data or ongoing developments not captured in these results.

If you want, I can further track Odisha's New Destination Policy or airport construction status once more information becomes available.

References:

[1] https://timesofindia.indiatimes.com/business/india-business/odisha-to-set-up-mro-facility-at-bhubaneswar-airport/articleshow/91112964.cms [2] https://www.business-standard.com/article/companies/odisha-to-set-up-mro-facility-at-bhubaneswar-airport-121062300178_1.html [3] https://www.newindianexpress.com/states/odisha/2021/jul/04/odisha-to-set-up-mro-facility-at-bhubaneswar-airport-2339108.html [4] https://www.thehindubusinessline.com/economy/odisha-to-set-up-mro-facility-at-bhubaneswar-airport/article35426101.ece [5] https://www.financialexpress.com/industry/aviation/odisha-mro-facility-to-help-indiaone-air-overcome-challenges/2294382/ [6] https://www.business-standard.com/article/economy-policy/odisha-airport-driven-scheme-to-boost-connectivity-121070200019_1.html [7] https://www.business-standard.com/article/companies/indiaone-airs-bhubaneswar-jeypore-flight-completes-three-years-121070200344_1.html [8] https://www.business-standard.com/article/companies/star-air-to-operate-direct-flight-between-jharsuguda-bhubaneswar-from-august-16-121070200356_1.html [9] https://www.business-standard.com/article/companies/bhubaneswar-airport-sees-22-growth-in-traffic-during-april-june-quarter-121070200383_1.html [10] https://www.thehindubusinessline.com/news/national/new-airport-in-odisha-to-open-up-tribal-dominated-koraput-district/article35392124.ece [11] https://www.networkthoughts.com/2021/07/odisha-to-set-up-mro-facility-at-bhubaneswar-airport.html

1. The Odisha government's subsidy and investment plan for the Major Maintenance, Repair, and Overhaul (MRO) facility indicates a focus on premium aviation services that can boost the economy.
2. The new Destination Policy in Odisha is not only promoting travel and lifestyle but also supporting economic and cultural ties within the state, as shown by the new intra-State route between Jharsuguda and Bhubaneswar.
3. The growth in regional aviation in Odisha is expected to influence the sports industry, as more travel opportunities might attract sports events and tournaments, further enriching the lifestyle market.
4. The aviation sector's surge in growth in Odisha can pave the way for a subscription-based model for certain services, such as airport lounges or loyalty programs, to cater to the increasing demand and attract a wider audience.
5. With the establishment of the MRO facility and the implementation of the New Destination Policy, Odisha is positioning itself as a hub for the aviation industry, potentially attracting businesses related to travel, lifestyle, and sports to invest and expand their operations in the region.

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