The Airport Authority of India (AAI) has cancelled the UDAN route licences of Air Odisha (Bhubaneswar) after the airline had failed to increase its rate of regularity above 70% of all scheduled flights, the Odisha Sun Times has reported.

The regional carrier operated just a single Beech 1900D and had previously attracted the ire of various officials by either cancelling or not launching regional routes across the country. Air Odisha focussed on services awarded to it under the government-run support scheme UDAN (Regional Connectivity Scheme).

The AAI warned Air Odisha earlier that it would face losing its licence if it did not increase the regularity of operations.

Air Deccan (DKN, Nashik), which shares the owner, Ghalia Petrol LLP, with Air Odisha, has also been struggling operationally and according to ZeeBis has also lost its UDAN route licenses for flights in Maharashtra where it has most recently linked Pune with Nashik leaving it just with the licenses to operate in the North East of India where according to the AAI it is licensed to operate to Shillong from Agartala and Dimapur under UDAN route licenses. It has also operated between Kolkata Int'l and Agartala without subsidies. In early November, the UAE-based owner floated the idea of recapitalising both Indian units, adding Avions de Transport RĂ©gional turboprops, and stabilising operations.

Air Odisha was the sole carrier serving Jagdalpur (from Vishakhapatnam and Raipur) and Jharsuguda (from Bhubaneswar and Raipur). In general, it concentrated its activities in north-eastern India.