Plans are moving forward to launch 'Air Kerala,' an airline dedicated to serving the southern state of Kerala in India. The new airline, which is being established as an ultra-low-cost carrier, is to launch its first flight in the first quarter of 2025.

In 2005, the Kerala state government originally suggested the concept for Air Kerala, and in 2006, the airline was registered as a fully owned subsidiary of Cochin International Airport. But over time, the project was repeatedly put on hold by state governments that came after one another.

The founder of Smart Travels, a travel service with offices in Dubai, Afi Ahmed, paid $270,000 for the domain name airkerala.com last year and decided to bring the airline back to life. The Indian Civil Aviation Ministry has now granted Ahmed's company, Zettfly Aviation, the first no-objection certificate (NOC) necessary to begin offering air transport services.

Air Kerala
Image Source: Aviation A2Z

The new airline would need to raise an initial capital of 60-100 crore Indian rupees ($7.1-$11.9 million), which is likely to increase to 250-300 crore rupees as it extends its international route network. The company is open to receiving outside capital from foreign nationals and other investors, as well as a public-private collaboration with the Kerala state government.

Air Kerala's Business Model

Air Kerala intends to launch three ATR 72-600 turboprop aircraft as part of its "ultra-low-cost carrier" setup. By leasing or buying all of the aircraft, the company hopes to expand to 20 aircraft to support its global operations.

The airline will primarily concentrate on linking tier-2 and tier-3 cities in Kerala, in addition to branching out to other neglected regional routes around India. The company believes that its ultra-low-cost model will appeal to the enormous Malayali diaspora, particularly in the Middle East, and will be its main selling feature.

Air Kerala's long-term objective is to grow globally, especially in the Middle East, even if the airline will first concentrate on domestic operations. The airline is optimistic that the substantial expat population from Kerala, roughly 2.2 million people, will help it expand in the area.

The business is open to investigating potential in other Gulf nations, such as Fujairah, and is not restricted to any one location in the United Arab Emirates. However, depending on how the foreign expansion plan works out, the final decisions regarding pricing and destinations will be made at a later time.

The announcement of Air Kerala coincides with a period of rapid expansion for the aviation industry in India. By 2025, it is anticipated that domestic traffic will increase by 6-8% yearly to reach 164 million passengers, while foreign traffic will expand even faster at 9–11% annually to reach 78 million passengers.

The fledgling carrier may have an advantage over more established companies in the Indian industry because of its ultra-low-cost model and emphasis on underutilized rural routes. Furthermore, the robust demand from the Malayali diaspora, especially in the Middle East, may offer a strong basis for Air Kerala's growth objectives.

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