Kozhikode: Kerala may soon get its own regional airline if a proposal put forward by the cooperative sector receives the government's approval. C N Vijayakrishnan, Chairman of MVR Cancer Centre and Research Institute, a major hospital initiative under the cooperative sector, on Sunday announced that preliminary steps have been initiated to launch a new airline, tentatively named 'Co-Keralam', aimed at making domestic air travel faster and more affordable.

Speaking at a press conference, Vijayakrishnan said the airline is being planned on the successful Cochin International Airport (CIAL) model. The proposed company will be formed with investments from the cooperative sector, while the aircraft will be operated on lease.

The initial phase envisages the induction of two 72-seater aircraft based at Kochi, connecting Kochi with Kozhikode, Kannur, Mangaluru, Bengaluru, Chennai, Coimbatore and Madurai. The fleet is expected to expand to four and later six aircraft as operations grow.

According to the proposal, around 200 cooperative societies will invest ₹2 crore each to raise the initial capital. The company is proposed to be chaired by the Chief Minister, with the Cooperation Minister serving as Vice-Chairman.

Vijayakrishnan said the project has been presented to the state government and has received a positive response from the Chief Minister, the Cooperation Minister and the Registrar of Cooperative Societies. He stressed that the venture would not require any financial assistance from the government.

Ticket prices are expected to range between ₹3,500 and ₹7,000, with fares comparable to those of high-speed train services. The airline also plans to introduce discounted last-minute fares for unsold seats up to an hour before departure.

The project is expected to generate around 200 jobs in its initial phase, while future plans include establishing aviation training institutes alongside the airline.

Expressing confidence in the project's financial viability, Vijayakrishnan said the airline is expected to turn profitable after two years of operations. Even under a worst-case scenario where flights operate without passengers for an entire year, the projected loss would be limited to around ₹32 crore, he claimed.

He added that nearly 200 cooperative societies have already expressed willingness to invest in the venture, and the promoters are ready to move ahead with the next stage once the government grants its in-principle approval.