State must get AIE shares if Air Kerala fails: Chandy

Upping the ante for the proposed Air Kerala project, Chief Minister Oommen Chandy has said that the State government will stake claim to Air India Express (AIE) shares if the Union government refused to relax conditions that hindered its airline from taking off.

Addressing a session to showcase the investment opportunities in the State among the NRIs at the final day of the 11th Pravasi Bharatiya Divas here on Wednesday, Mr. Chandy said the move was to ensure that the State government had control and participation in the operation of AIE.

The government strongly believed that the State was fully eligible for exemption in conditions to take forward its airline project as transportation woes of Malayali expatriates was a matter of great concern.

The State government would not have pressed its case, if the Union government’s conditions were applicable universally and none had been granted exemption in the past.

But AIE was given an exemption within six months of its registration to operate international operations with just two aircraft and before operating a single domestic service.

“If AIE could be granted such a benefit simply because it is the subsidiary of Air India, then an airline proposed by a State government has every right for a similar relaxation,” Mr. Chandy said.

Stipulations

As per the existing regulations of the Union government, an airline should have five years’ experience in domestic operations and a fleet of 20 aircraft before it could be permitted to fly abroad.

Mr. Chandy said that Air Kerala cannot run the risk of starting off with domestic operations as it would threaten its very survival.

He said the concept of Air Kerala was launched during his tenure in 2005. A detailed project report was prepared and a company was registered paying Rs.1 crore.

Taking a dig at the Left Democratic Front government that followed, Mr. Chandy said that while it did not dissolve the company, it failed to do anything to take the project forward.

Earlier, managing director of Air Kerala V.J. Kurian said that while the project received a fresh impetus owing to the overwhelming support evinced by the delegates at the last year’s Emerging Kerala investors’ summit, the airline cannot probably take off without getting relaxation in the twin-conditions.

Domestic services

Operating domestic services will entail big loss. Since none of the expatriates with deep pockets had shown any interest in taking that risk, there was nothing much to do except for waiting for the relaxation of conditions by the Union government, he said.

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·  State eligible for relaxation in conditions: Chandy

·  Says AIE was granted exemption

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