Thai AirAsia is slated to start the flight service early next year, the minister said.
"However, it is not decided how many times it will fly in a week," Panda said.
Panda also said a memorandum of understanding (MoU) will soon be signed between Thai AirAsia and the Odisha tourism department for starting the flight service.
The airline had started operating flights between Bhubaneswar and Kuala Lumpur with four weekly non-stop flights in April this year, he said.
Meanwhile, officials said the state government will provide certain facilities to AirAsia such as giving subsidy and waive value added tax (VAT) on aviation turbine fuel (ATF).
Earlier, the state government had decided to slash VAT on ATF to zero from five per cent to boost international air connectivity.
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