The government of the Northeast Indian state of Odisha has cancelled a domestic services contract awarded to local carrier Air Odisha (Bhubaneshwar) effective immediately.
Local media outlets claim the government's reason for terminating the agreement stemmed from Air Odisha's unsatisfactory services. The carrier, in turn, has accused the government of failing to deliver on subsidies thus forcing it to cancel a number of flights.
Air Odisha began regular flights from Bhubaneshwar to Jeypore, Raipur, Ranchi, Rourkela, and Hirakud in January this year using Cessna (single turboprop) Grand Caravan 208Bs.
