The Hindu Business Line : Kerala submits budget airline report to Centre

THE detailed project report on the proposed international budget airline to be launched by the State Government has been submitted to the Centre for clearance.

Announcing this at a press conference following a meeting of the State Cabinet on Wednesday, the Kerala Chief Minister, Mr Oommen Chandy, said the proposed airline will have to receive certain exemptions from the Government of India. For instance, current regulations stipulate that an Indian airline must have operated domestic services for at least five years before it can be allowed to fly abroad. If the Kerala Government-supported airline is to operate, the Central Government will have to exempt it from this rule, he said.

Similarly, current regulations specify that an airline company has to have at least 20 aircraft to be eligible to operate international services, he explained.

The proposed airline will have to be exempted from this rule, as it plans to start services with only four or five aircraft, Mr Chandy said. The Centre will also have to extend the open skies policy to airports in Kerala, if the proposed airline is to take off, he added.

The State Government will hold a stake in the proposed airline, which is to be structured as a public-private venture. A large number of non-resident Keralites are expected to buy shares of the airline, Mr Chandy said.

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