Logistics

Air Kerala: State to press Centre for relaxation in rules

PTI Thiruvananthapuram | Updated on October 16, 2012 Published on October 16, 2012

Congress-led UDF Government has asked the Centre to waive certain regulatory norms to start its proposed low-cost airline ‘Air Kerala’, mainly to operate services to Gulf countries.

Keen on floating a state-sponsored air service, Congress-led UDF Government has asked the Centre to waive certain regulatory norms to start its proposed low-cost airline ‘Air Kerala’, mainly to operate services to Gulf countries.

Under the present rules, an airline can fly international routes only after five years of domestic service operations and acquiring at least 20 aircrafts.

However, to reinforce its case, the State has cited the exemption given by the Centre to Air India when it launched Air India Express budget airlines.

“When Air India Express was floated, the Centre made some relaxations in the regulations. We are seeking a similar gesture from Centre for our Air Kerala,” Chief Minister Oommen Chandy told PTI today.

Air India Express was given certain relaxations citing that it was a subsidiary of Air India. As Air Kerala is being promoted by the State Government, the Centre should adopt a positive approach, Chandy said, adding, “We expect a favourable decision in this regard.” The issue was brought before Prime Minister Manmohan Singh when he visited Kerala for the ‘Emerging Kerala’ global investment meet last month. Singh had then assured the State that he would look into the issue.

Asked about reports that Government had plans to explore possibility of having a tie-up with foreign airlines, Chandy said it was conceived as a “a Government venture with people’s participation”.

Cochin International Airport Ltd (CIAL), promoted on PPP mode, would be followed for Air Kerala also. But, “we have added one more ‘P’ to PPP. Air Kerala would be Public-Private-People’s Participation model, Chandy said.

The dream project is being planned and executed mainly for conducting services from Kerala to the Gulf countries, where more than 2.5 million Keralites are living.

Originally conceived in 2005, Air Kerala was registered as Air Kerala International Services Limited a year later, during Chandy’s first stint as Chief Minister. However, the project failed to take off in next five years of LDF rule.

Consultancy firm Ernst and Young that conducted a study in 2006 had found the project feasible. The firm has now been asked to draw up a Detailed Project Report and it was expected soon, Chandy said.

After reviving the proposal, it had received good response from investors at the Emerging Kerala meet, Chandy said.

Of late, the Non-Resident Keralites (NRKs) have been facing serious hurdles with frequent cancellation of flights, without sufficient notice, by operators like Air India.

Besides, frequent hikes in fares by Air India had also caused serious hardship to the NRKs.

This had been the prime reason that prompted the Government to revive Air Kerala idea as it would certainly benefit Keralities in West Asia as a budget airline.

Published on October 16, 2012
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