Government firm on Air Kerala project: Chandy

Chief Minister Oommen Chandy has said the government is determined to go ahead with the proposed Air Kerala project which will cater to Malayalis in West Asia.

Addressing a press conference on the sidelines of the Pravasi Bharatiya Divas, Mr. Chandy said the proposal was the baby of the previous United Democratic Front government. A study was conducted and the project had been found feasible.

The Union government’s condition that an airline should have five years’ experience in operating domestic services and a fleet of 20 aircraft was the main hurdle preventing the airline from taking off.

Mr. Chandy said if the new airline was to begin with domestic operations it would incur a huge loss. The airline could be launched with five aircraft and the Union government had been approached for ease in conditions.

The Chief Minister justified the demand citing how the budget carrier Air India Express, subsidiary of Air India, was allowed to fly internationally without operating domestic services.

He said the government would apply for the airline once the Union government granted necessary exemptions. Applying entails an initial financial requirement of Rs.100 crore, which could be arranged within a week.

A meeting held last year on the sidelines of the Emerging Kerala investors’ meet had decided to launch Air Kerala with an initial capital of Rs.200 crore as soon as it received the requisite exemptions from the Central government.

Of the total shareholding, the State government, Cochin International Airport Limited, and other public sector undertakings would collectively hold 26 per cent.

On the deliberations at a session on Gulf NRIs, which he sat through, at the first day of the three-day Pravasi Bharatiya Divas, Mr. Chandy said the government was determined to facilitate investments in the State by Non-Resident Indians.

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·  Centre approached for relaxation in conditions

·  Initial capital of Air Kerala will be Rs.200 crore

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