41
The Odisha government has approved a ₹26.87 crore subsidy package to keep the Bhubaneswar–Dubai direct flight operational. The decision was taken in a pre-dawn meeting on 1 February 2026, amid concerns that the route could be discontinued after March due to weak seasonal demand.
The funding, provided as Viability Gap Funding (VGF) to IndiGo Airlines, will support the thrice-weekly service until the end of the 2025–26 winter schedule, ensuring continued international connectivity for the state.
- Reason for the Subsidy
Officials warned that without financial support, the route—launched in 2023—was at risk of being withdrawn after March because of low passenger load factors during the lean season. - Importance for Migrant Workforce
Dubai serves as a crucial gateway for nearly 150,000 migrant workers from Odisha employed across the Gulf region, many of whom travel onward to Abu Dhabi, Doha, and Muscat. - Impact if Route Was Axed
Cancellation of the non-stop flight would force passengers to connect via Mumbai or Delhi, increasing travel time by at least six hours and raising fares by around ₹8,000 per passenger. - Economic Justification by the State
Odisha’s Commerce & Transport Department stated that the Dubai route generated an estimated ₹250 crore in remittances last year and has helped boost exports of seafood and hand-loom products. - Debate Over Public Funding
While similar VGF arrangements have been used by other Indian states to secure Gulf connectivity, critics argue such subsidies distort market competition and burden public finances. - Implications for UAE-Based Employers
The decision ensures smoother crew rotations and family travel during the Ramadan period. However, IndiGo has stopped bookings beyond 29 March 2026, citing the need for clarity on long-term funding. - Risk of Future Disruption
Mobility planners and travelers are advised to monitor seat availability closely, as the route’s continuation beyond the current subsidy window remains uncertain.
