Kerala is preparing to take a significant step in regional aviation with plans for a new cooperative-owned airline aimed at making domestic air travel faster and more affordable. The proposed carrier, tentatively named “Co-Keralam,” is expected to connect major cities across Kerala and neighbouring states while operating on a public cooperative model.
The initiative, announced by C.N. Vijayakrishnan, Chairman of MVR Cancer Centre and Research Institute, proposes a company structured on the successful CIAL model. The airline plans to begin operations with two leased 72-seat aircraft based at Kochi, linking destinations including Kozhikode, Kannur, Mangaluru, Bengaluru, Chennai, Coimbatore and Madurai.
The project is expected to be funded through Kerala’s cooperative sector, with around 200 cooperative societies proposed to invest ₹2 crore each in the first phase. According to the proposal, the venture would require no direct financial investment from the state government, while the Chief Minister and the Cooperation Minister are expected to play leadership roles in the governing structure.
Ticket prices are projected to range between ₹3,500 and ₹7,000, positioning the airline as a cost-effective alternative for regional travellers. The company also plans to introduce dynamic pricing, allowing unsold seats to be offered at discounted fares up to an hour before departure.
Beyond passenger services, the project includes plans for aviation training facilities and is expected to create around 200 jobs during the initial phase. The promoters believe the airline could achieve profitability within two years, with plans to expand the fleet from two aircraft to four and eventually six as demand grows.
The proposal has been presented to the Kerala government, and the promoters say they have received an encouraging response. The project will move to the next stage once it receives in-principle approval from the government.
