First-of-its-kind in India; 200 Kerala cooperative societies to join hands to launch airline service

Kozhikode, Kerala: Preliminary work has been completed for what is proposed to be India's first airline to operate under the cooperative sector using leased aircraft, MVR Cancer Centre and Research Institute chairman C N Vijayakrishnan said on Monday.

Speaking at a press conference in Kozhikode, Vijayakrishnan said the project's first phase proposes leasing two aircraft to begin operations.

The airline is planned to be based at Cochin International Airport in Nedumbassery. Services are proposed to connect Kochi with Karipur, Kannur, Mangaluru, Bengaluru, Chennai, Coimbatore and Madurai.

Company to be set up under cooperative sector

Vijayakrishnan said a company would be incorporated under the cooperative sector to implement the project.

The first phase is proposed to be financed through equity contributions from 200 cooperative societies, with each society investing Rs 2 crore.

According to him, the proposed company would have the Chief Minister as its chairman and the Cooperation Minister as its vice-chairman. He said the state government would not have to spend any money on the project.

If the initial phase proves successful, operations will be expanded by adding more aircraft and services.

Affordable regional connectivity at the centre of proposal

The proposed airline aims to offer faster and more affordable domestic air travel. The plan is to operate 72-seat aircraft on regional routes.

Vijayakrishnan also said an aviation institute is proposed alongside the airline project.

He estimated the monthly operating cost of each aircraft at Rs 3.20 crore. According to the project's projections, even if an aircraft were to operate without any passengers for a year, the loss would be limited to Rs 32 crore.

The airline is expected to operate under the proposed name 'Co-Keralam', and efforts are under way to launch the service at the earliest, he said.

Separately, Vijayakrishnan said a public interest litigation was being planned to seek implementation of the proposed Nilambur–Nanjangud railway line.