India’s own state of Kerala is to own Air Kerala, the newest addition to the industry. Air Kerala is the only airline privately owned by a state government. It is the third airline launched in India since 2014.
By November, Air Kerala will be transporting passengers and will serve domestic routes. Over time, the airline would serve international flights to Gulf Cooperation Countries (GCC).
Most Keral residents live in GCC, with 90% living in the United Arab Emirates and Saudi Arabia. Keralites abroad return about $11.6 billion in remittances yearly, being the backbone of the state’s economy.
However, professional charges and office expenses, according to Air Kerala’s balance sheet in the Ministry of Corporate Affairs, had garnered losses to the company pre-operation.
Meanwhile, talks about the airline’s start flight in November are now at the government level, according to an AKIS representative.
Due to the high traffic between GCC and Kerala, analysts speculate it to be lucrative for airline businesses. Private individuals and foreign airlines may also buy a stake in Air Kerala’s operations while the state government retains only 26% of the company.
With the shutdown of the five-years/ twenty airplanes rule for airline industries under the Modi Government, Air Kerala will be handling international flights as soon as possible after its launch.