Kerala approves India’s first cooperative airline: CM’s bold promise

Kerala has approved a proposal to launch an airline under the cooperative sector, paving the way for what is being projected as India’s first cooperative-sector airline.

Chief Minister V.D. Satheesan announced the approval while inaugurating the silver jubilee celebrations of the Calicut City Service Cooperative Society in Kozhikode on Sunday, according to PTI.

The proposed airline, tentatively named Co-Keralam, aims to improve regional air connectivity, offer more affordable travel options and create jobs. However, its planned routes, fares and aircraft are yet to translate into operational services, and commercial flights have not been announced as having started.

“We will show the world this is Keralam’s cooperative sector,” Satheesan said, according to PTI.

Co-Keralam: Kerala’s proposed cooperative-sector airline

The project will be led by C.N. Vijayakrishnan, chairman of MVR Cancer Centre and Research Institute, with a team associated with his cooperative-sector initiatives involved in its implementation.

Satheesan said the project had received permission to launch an airline through the cooperative sector, comparing its ambition with established carriers such as Air India and IndiGo.

The Chief Minister said the initiative would demonstrate the potential of Kerala’s cooperative movement to expand into new sectors.

Which routes could the airline operate?

The proposed airline plans to begin operations from Kochi, using two leased aircraft with 72 seats each.

The initial network is expected to connect Kochi with seven destinations:

• Kozhikode

• Kannur

• Bengaluru

• Mangaluru

• Chennai

• Coimbatore

• Madurai

These are proposed routes, and the final schedule will depend on the airline’s operational preparations and the necessary approvals.

How much could tickets cost?

The proposed fares range from ₹3,500 to ₹7,000, potentially offering another option for travellers flying between Kerala and nearby cities in southern India.

The fares are indicative plans, not confirmed ticket prices. Actual prices may vary depending on the route, travel date and final operating arrangements.

How will the airline be funded?

The financing plan envisages around 200 cooperative societies contributing ₹2 crore each, potentially raising ₹400 crore for the venture.

The promoters have said the project would follow the model of Cochin International Airport, which was developed with participation from multiple investors, and would not require financial assistance from the state government.

The proposed funding structure and operational plan will be key to determining how the airline progresses from approval to launch.

What does the approval mean for travellers?

For passengers in Kerala, the proposed airline could eventually provide more regional connections without requiring every journey to pass through larger aviation hubs.

If launched as planned, it could offer:

• More direct connections between Kochi and cities in Kerala and neighbouring states.

• An additional choice for travellers seeking regional flights.

• Potentially competitive fares on selected routes.

• Employment opportunities linked to the airline and its supporting operations.

However, travellers should not make plans based on the proposed services yet. Confirmed launch dates, flight schedules and ticket sales have not been announced in the information available.

Kerala CM vows to protect bank depositors

At the event, Satheesan also said the government would guarantee deposits made in the cooperative sector. He argued that depositors in cooperative banks should receive the same assurance as those placing money in nationalised and scheduled banks.

He warned against corruption and the misuse of public deposits, saying those responsible for misappropriating depositors’ money should face legal consequences.

The Chief Minister also praised the Calicut City Service Cooperative Society for its charitable and development initiatives, describing the cooperative movement as a backbone of Kerala’s rural and urban economies.

He further said government spending during the Onam season had helped put money into the hands of ordinary people and boost economic activity. Satheesan also claimed the state recorded its highest-ever revenue in the previous month since the introduction of the Goods and Services Tax (GST).

The proposed airline aims to improve regional connectivity, offer more affordable travel options and create jobs in Keralam. If implemented, the initiative would mark a new chapter for the state’s cooperative sector, with the proposed routes and fares still to be confirmed before operations begin.

With inputs from Agencies