The union civil aviation ministry on Monday issued a show-cause notice to Air Odisha to provide clarity over ownership, sources privy to the developments told CNBC-TV18.
Air Odisha is owned by Ahmedabad-based GSEC Aviation and Monarch Networth Capital.
The ministry has decided not to consider Air Odisha and Air Deccan bids for UDAN-3, said people familiar with the matter.
According to multiple people familiar with the development, ministry has received bids for Campbell Bay airport for aircraft operations and Car Nicobar, Havelock, Hut Bay, Neil Island and Long Island for seaplane operations under UDAN-3.
Under UDAN-3, aviation ministry has received bids from IndiGo, Jet Airways, SpiceJet, TruJet, Zoom Air, Ghodawat Group's Star Air, Alliance Air among 15 carriers and evaluation of bids are under process.
For seaplane operations under UDAN-3, SpiceJet and Andaman Airways have submitted bids.
Under the Regional Connectivity Scheme (RCS), also known as UDAN or Ude Desh ka Aam Naagrik, 122 routes from 35 airports are operational as of now and this include 21 unserved and 14 underserved airports.
The Airports Authority of India (AAI) is the implementing agency of the UDAN scheme that was announced in March 2016. The government, in its bid to make flying more affordable for the masses, had in 2016 announced the UDAN scheme wherein the fares were capped at Rs 2,500 for a one- hour journey for connecting smaller towns.
Following this, five airlines got the licence to operate on 128 routes in the first round of auctions in March 2017, and 15 airlines on 325 routes, including those having chopper operations, in the second round in January last year.
First Published: Jan 7, 2019 12:46 PM IST
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