Kerala Air: State pressing Centre for early clearance for low-cost airline

Aviation policy scuttles Kerala Air launch

BY A CORRESPONDENT
10th January 2006

Kerala Air, the proposed Kerala government-owned airline has not made much progress yet, despite demands from all quarters in the state. At the ongoing Pravasi Bharatiya Diwas in Hyderabad, Kerala chief minister Oommen Chandy made a renewed push for Kerala Air, hoping the requests will not go to waste at the NRI jamboree.

Kerala has millions of workers in the Gulf countries, who contribute significantly to the state's economy. Their remittances to the state have even coined the term "money order economy." However, unlike NRIs in the West, a large number of them are poor and lead a hand-to-mouth existence, supporting their families back home with their meagre earnings. Kerala Air was the Kerala government's plan to start its own low-cost airline to connect Kerala with the Gulf with cheaper flights. The Kerala government has repeatedly claimed that the airline is meant to help the poor workers, and not to make profits for the state. Chief minister Oommen Chandy says that workers cannot afford the hefty fares of Air India and its low-cost subsidiary Air India Express. Many people are unable to come to their home state for long, Chandy has claimed.

The Kerala government proposes to reserve 15-20 seats on every Kerala Air flight for those workers in the Gulf who have not been to Kerala for 5 years or more. They will have to pay just 20-25% of the actual cost of the ticket. Ernst & Young, which was hired to study the feasibility of such an airline has given its thumbs-up about the viability of Kerala Air. However, there has been little progress. Why?

As per rules, only a private airline which has at last five years of experience in domestic flights can fly abroad. It is for this reason that among the many Indian airlines, only Jet Airways and Air Sahara are permitted to fly abroad. The upstart airlines which have always hoped for permission to fly abroad, were badly let down when the government announced its policy in this regard.

However, Kerala wants an exemption in of this rule in the case of Kerala Air, saying "We can't wait for five years and we want to start with 5-7 aircraft." Several all-party delegations have met prime minister Manmohan Gandhi, UPA chairperson Sonia Gandhi and home minister civil ministry in this regard. However, the civil aviation ministry has not given any positive response so far.

Chandy says Air India is partly responsible for the Kerala Air delay. Air India, he says, makes the bulk of its profits in the Gulf-Kerala sector, and does not want to give it away.
At the Pravasi Bharatiya meet, NRIs from Kerala also asked the Center in a resolution to expedite clearances for Kerala Air. Speaking at the meet, Chandy blamed the Civil Aviation ministry of being insensitive. "We need Kerala Air to help our poor workers. This is not for profits," he said in an interaction with the delegates. The Kerala assembly has already passed three resolutions seeking clearance for Kerala Air.