However, it is not decided how many times it will fly in a week", said Ashok Chandra Panda, Odisha's tourism minister.
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.
The Biju Patnaik Airport or Bhubaneswar Airport belongs to Airports Authority of India (AAI) and is suitable for operation of Code 'D' aircraft of type B-767-400. The airport is also equipped with facilities for night operations, runway 14/32 of dimension 2743m X 45m, apron to park six aircrafts and navigational aids.
AirAsia was selected through competitive bidding to start operations from Odisha. The state government had invited an Expression of Interest (EoI) from the scheduled air carriers for running flights to destinations in South East Asia like Singapore, Bangkok and Kuala Lumpur. To woo the air carriers, the state government had agreed to provide reasonable Viability Gap Funding (VGF) in the form of subsidy grant.