Bhubaneswar: Odisha is staring at potential suspension of direct flights to three domestic destinations — Dehradun, Indore, and Port Blair – as the Viability Gap Funding (VGF) agreements for these routes are set to expire in March.
These services from Biju Patnaik International Airport (BPIA) were launched in February 2025 under Odisha’s new civil aviation policy approved in October 2024 to boost connectivity by offering airlines VGF of Rs 5 lakh per round trip for domestic routes for the initial six months of operations with a possible extension over the same period based on performance.
According to airport sources, passenger footfall on the Dehradun and Indore routes has been encouraging and commercially promising, with no major issues of low occupancy except potentially on the Port Blair sector. Load factors showed an initial dip earlier but rose significantly by October 2025, sparking optimism for self-sustainability. However, with the VGF pacts nearing their end, uncertainty looms with the operator, IndiGo, also considering reallocating aircraft to other routes, especially following a DGCA directive that led to a 10% cut in its winter schedule capacity and related operational adjustments, the TOI reported.
The report, quoting an airport official, further stated that Dehradun and Indore routes appear viable without continued subsidy. “The passenger footfall was quite encouraging on both flights. The routes are commercially viable. It is up to the airline and government to take a call,” the official added.
Earlier, Bhubaneswar-Abu Dhabi service was discontinued in December 2025 due to expired VGF support. The state cabinet, however, recently approved Rs 26.87 crore VGF for IndiGo for a six-month period till March this year to continue its direct international flights from the city to Dubai and Singapore, aiming to sustain diaspora links and trade ties.
