Thiruvananthapuram: Kerala is set to be transformed into a premier aviation logistics hub for Asia, Chief Minister VD Satheesan announced during his budget address.

The development strategy has been designed to capitalise on the state’s surging aviation demands, export logistics requirements, and vast growth potential within the tourism sector. The initiative will be centred around Kerala’s four existing international airports, with an initial allocation of ₹200 crore earmarked to fund preliminary operations.

Also read: Kerala Budget: VD Satheesan Govt announces ₹400-crore ‘Mission Samudra’

Introduction of 'Aero Cities'

A core component of the state's vision is the establishment of comprehensive "Aero City" projects. These specialized zones are intended to integrate:

  • Global Capability Centres (GCCs) and core service sectors.

  • Hospitality and tourism infrastructure.

  • Aviation-related commercial and trade services.

Alongside these commercial zones, the government plans to considerably bolster its domestic Aircraft Maintenance, Repair, and Overhaul (MRO) sector to support regional fleets.

Training and export infrastructure

To address technical skill requirements, Satheesan confirmed that the state will set up dedicated pilot training academies and aircraft maintenance engineering institutes. All training facilities will operate strictly in compliance with Directorate General of Civil Aviation (DGCA) standards.

The budget also outlines targeted infrastructure upgrades to boost high-value exports. The government will expand integrated packhouse facilities and specialised pharmaceutical cargo hubs to streamline international trade across Kerala's agricultural, fisheries, and pharmaceutical sectors.

Furthermore, plans were unveiled for a world-class Global Convention Centre to be constructed adjacent to Cochin International Airport to draw international business tourism to the region.