Kerala plans to set up airline firm

In what could be the first, state-sponsored airline company in the country, the Kerala cabinet today gave an in-principle approval for setting up an aviation company in the joint sector to operate international services.

Seeking to serve mainly the Gulf-bound passengers, the proposed airline would be modelled after Air-India's budget carrier Air-India Express, chief minister Oommen Chandy said after the cabinet meeting today.

Cochin International Airport Ltd (CIAL) has been asked to choose a consultant for working out a detailed report on the proposal.

The airline, estimated to cost roughly Rs 300 crore, would have 26% government equity, and the rest of the amount would be raised from non-resident Keralites as had been done in the case of CIAL.

The government share in the venture would be met by CIAL, which has emerged as one of the successful, joint sector airport in the world since its inception about 10 years ago.

"This is a long-pending dream of Keralites working abroad. Our purpose is not to reap profits but serve the NRKs (non-resident Keralites)," Chandy added.