Sunday, March 13, 2011

POLICY INPUT:Transport & Commerce Dept.Govt. of Orissa

Bikash Choudhury


1.Air Connectivity to:Bhawanipatna-Koraput-Bolangir-Rourkela-Keonjhar-Baripada-Bhubaneswar(Raipur & Kolkata as optional) on a sustainable manner at reasonable cost would help faster economy development and Governance.

2. Though, all State Govt. are very keen to extend air services to remote regions of the State;but, due to load factor and cost has deterred till now any forward movement. Therefor, I hereby propose a collaboration strategy that may help air connectivity to remote places of Orissa in near future.

a. One Special Purpose Vehicle can be created for the purpose in collaboration with a low cost airline like Indigo/Jetlite/Kingfisher red, Orissa govt. and Private airport developer for the purpose. The SPV can either use a old(10-15 year) Boeing 747/Airbus to keep the cost low and cover all the above places once in morning and once in the evening.The passengers from remote areas can be given 10-20% concession by the SPV while State govt. can waive sales tax for 5-10 years.

b.Govt. can buy a new passenger jet and give on lease to the SPV on little softer terms to keep the passenger fare lower.

c. Cargo transfer between destination can also subsidies the operation.

d.Govt. can assure some minimum load factor in the initial phase.

e.Industry can be roped in to subsidies the operation on some innovative business model.

If govt. plan such an exercise in close coordination with Industry, Airlines and tour operators then Air connectivity can actually see the light of the day in two years time from now. That would be so much helpful for Governance and deployment of Govt. staffs and those places can also attract investment.

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