Kerala govt wants norms relaxed for Air Kerala

The Kerala government has sought relaxation in the eligibility criteria for operating in the international routes for its proposed low-cost airline, Air Kerala.

"We have requested the Union civil aviation ministry to treat Air Kerala as a special case for diluting the eligibility criteria for operating in the Middle-East routes from Kerala," Kerala Chief Minister Ommen Chandy told Business Standard.

At present, the main criteria for an airline to operate in the international route are: have a minimum five years of continuous domestic flying experience and a minimum fleet of 20 aircraft.

Chandy said the state government is yet to receive the reaction from the Union civil aviation minister Praful Patel adding that "however, we are hopeful that the government will permit us, taking account of non-resident Keralites in Gulf."

Meanwhile, Kerala has firmed up its plans to float a separate public limited company to launch Air Kerala with a capital base of Rs 200 crore.

"The state government will pick up 26 per cent stake while non-resident Indians will pick up 74 per cent. We have entrusted Cochin International Airport (CIAL) to go ahead with registration formalities for setting up company for Air Kerala," Chandy said.

CIAL Managing Director V J Kurien said the state would launch a new concept of issuing discount coupons to general public for travelling in Air Kerala. "Initially, Air Kerala Company will have 2.5 lakh shareholders, which will later be increased to 1 crore in the final phase," he said.

Kurien added that the concept of issuing discount coupon will ensure a captive traveller for this low-cost carrier, which will be flying to Middle-East destinations.

"The discount coupon will be valid for six years. The person who is using the coupon will definitely take his family along with him. This will lead to assured load factor to Air Kerala," Kurien said.

Earlier, Ernst & Yound had submitted a feasibility report on Air Kerala to the Kerala government, which was later submitted to the Union government.