Plans for a new Indian airline, Air Kerala, are progressing with the company now aiming to launch its domestic operations in the first quarter of next year and expand internationally by 2026, according to the UAE-based businessman leading the venture.
Zettfly Aviation, the company behind the airline, has received the initial no-objection certificate (NOC) from India’s Civil Aviation Ministry to operate air transport services, its chairman Afi Ahmed told The National. “The first step is the NOC, it’s one of the biggest tasks and that task is now covered,” he stated.
The subsequent steps will involve focusing on technical aspects, flights, and contracts for the engineering companies, with all expected to be completed in “around six to eight months”. Set up as an “ultra-low-cost airline”, Air Kerala plans to start with three ATR 72-600 aircraft and expand its fleet to 20 for international operations.
The company is considering both leasing and purchasing the aircraft. An estimated 60 to 100 crore Indian rupees ($7.1M to $11.9M) in initial funding will be required, rising to 250 crore rupees to 300 crore rupees for expansion to international destinations. The concept of Air Kerala was first proposed by the Kerala state government in 2005, and the airline was registered as a wholly-owned subsidiary of Cochin International Airport in 2006.
Despite being announced with much fanfare as a project to support Keralites living abroad, it was shelved several times by successive governments. Mr Ahmed, founder of Dubai tourism agency Smart Travels, purchased the domain name airkerala.com for AED 1M ($270,000) last year and decided to revive the plans for the airline.
The proposed launch comes amid growth in India’s aviation sector. Domestic traffic is expected to grow by 6 to 8 per cent annually, reaching up to 164M airline passengers by March 31, 2025, according to aviation consultancy Capa India. International traffic is projected to grow at a slightly faster rate of 9 to 11 per cent year-on-year, reaching up to 78M passengers during the same period.
Initially, Air Kerala plans to serve cities within Kerala as well as other parts of India that are not currently well-connected. The airline’s major selling point will be its ultra-low-cost model, Mr Ahmed said. Another unique selling point will be “the timing” because “we will make sure that we will be on time,” he added.
The company is open to a public-private partnership with the Kerala state government if they are interested, the businessman said. It is also open to collaborating with expatriates and external investors. “If there is somebody who wants to join with us because we are expanding … then I can [achieve] the plan a little bit faster,” he noted.
Regarding international expansion, the company is confident that the large number of expatriates from Kerala will support its growth. The number of emigrants from Kerala stood at over 2.2M, according to the Kerala Migration Survey 2023, which was released last month.
The global Malayali diaspora has grown to an estimated five million, the report found. The Gulf remains the preferred destination, with 80.5 per cent choosing the region and the UAE being the top country.
Air Kerala is not focused on any one specific city within the UAE, Mr Ahmed said. “If we get an opportunity from Fujairah also, we will do it … if you look at who is leading the market, it’s driven by price … that’s the reason we will ensure our costs are ultra-low.”
However, final decisions on pricing and destinations will be taken later and will depend on the international expansion strategy. For now, the company expects to be in the red for two years after launching operations. “Third and fourth year [is when] we are going to start to get profits,” he said.
