What is the status of Air Kerala Project?

Air Kerala is a proposed airline promoted by the Government of Kerala, registered as a subsidiary of the Cochin International Airport Limited (CIAL). In March 2015, the Board of Directors of the airline decided to defer the start of commercial operations until a clear picture of relevant government rules emerged.

The airline had initially planned to commence operations in April 2013, however, the Indian government’s stipulation, that an Indian airline seeking to operate international air services should first have a fleet of at least 20 aircraft and a five-year experience in operating domestic services, had put the project on the back burner.

Video – Comedy Incidents which will happen in Air Kerala if launches.

Video – Hamza Anapuram

Air Kerala will be India’s first airline with a State government as one of the primary stakeholders. The State government, CIAL and other public sector companies will together hold 26% of the shares of the company, while the remaining 74% will be issued to individuals and private groups.

The project was first proposed in 2005 during the Chief Ministership of Oommen Chandy and Air Kerala International Services was registered as a fully owned subsidiary of Cochin International Airport in February 2006. However the proposal went to cold storage, after the ruling UDF government stepped down in 2006. On returning to power in 2011, the UDF government decided to revive the project. The hardship faced by the Non-resident Keralites, due to high airfares and frequent cancellation of flights between Kerala and the Gulf countries, led to the revival of the Air Kerala proposal. The project has evoked good interest from the various Malayali businessmen and Non-resident Keralites in the Middle East.

Air Kerala was expected to submit formal application in November 2012 before the Directorate General of Civil Aviation (India) (DGCA) for getting the no objection certificate for services, as stated by the Minister for Fisheries, Port and Excise, Shri. K. Babu, who is also a member of the director board of Air Kerala. Kerala’s former Chief Minister Oommen Chandy said in February 2014 that the Union government’s stipulation for starting international airline operations had put the project on the back burner. He said that his government would pursue the project if these stipulations were removed.

In December 2014, the Board of directors decided to commence domestic operations and began negotiations for leasing a 15-seater aircraft to fly between the state’s three airports, but changed their mind and began looking at leasing an aircraft that could fly non-stop for five hours so as to achieve the proposed minimum required domestic flying credits at the earliest. In March 2015, the Board of Directors of the airline decided to defer the start of commercial operations until decided to wait till a “clear picture” emerged on the move to amend the ‘5/20’ rule