Feasibility report on Kerala Airlines submitted

Cochin International Airports Ltd (CIAL) has submitted the feasibility study report of the proposed airline company to the state government. It is learnt that the state cabinet would consider the report by Earnest & Young in the next meeting itself, but the declaration will not be made due to by-elections to Thiruvananthapuram parliament constituency.

Both the state government and CIAL will have equity participation to the tune of 26 per cent in the proposed company, Kerala Airlines, and the rest will be mobilised through public issue, with preference to Keralites in Gulf countries.

According to the report, the company will commence operations by operating in the domestic routes and will start overseas operations by having flights to Gulf destinations.

According to sources at Cochin International Airports, there is space for a budget airline in the Gulf sector as the fares of other airlines, including Air-India, are rather high. Kerala Airlines may commence its operation within six months if the government gives the necessary clearance at the earliest. It is proposed to have five aircrafts on a lease basis to commence operation and add more flights within a short period.

According to CIAL managing director V J Kurien, the state government would soon take a decision, and if everything goes well the company would start operations in 2006. The response from Gulf countries for the airline is very much encouraging, and mobilising capital will not be a problem. He also said the study report for starting a new aircrafts maintenance company will soon be submitted.

Cochin International Airports proposes to start the aircraft maintenance hanger at Kochi airport as around 400 acres of land is available for the company. It also proposes to start hotels with five-star facilities and other projects adjacent to the airport.

Kurien further said through the aircraft maintenance company a lot of Indian workers and technicians in the Gulf region and Singapore could be re-located to Kochi.

The new separate company will provide preference in equity participation for such workers and skilled workers abroad.

Taking Off

Both the state government and CIAL will have equity participation to the tune of 26 per cent in the proposed company

The company will commence operations by operating in the domestic routes and will start overseas operations by having flights to Gulf destinations

There is space for a budget airline in the Gulf sector as the fares of other airlines, including Air-India, are rather high