Kozhikode: Kerala’s ambitious plan to launch India’s first airline in the cooperative sector is set to move a step closer to reality on Wednesday, with the promoters of the proposed venture to formally hand over the company’s registration certificate and bylaws to the state government in Thiruvananthapuram. Tentatively named ‘Co-Keralam’, the airline aims to transform regional air connectivity through a cooperative-driven business model, drawing investments from around 200 cooperative societies and Non-Resident Indians (NRIs) from the state.

The promoters will hand over the documents to Cooperation Minister M Liju, marking a key milestone in the project. The initiative is spearheaded by CN Vijayakrishnan, chairman of the MVR Cancer Centre and Research Institute in Kozhikode, which operates under the cooperative sector.

“The Chief Minister has already informed us that the necessary initial approval has been granted to launch an airline in Kerala under the cooperative sector. On Wednesday, we will complete the formal process in Thiruvananthapuram by handing over the registration certificate and the bylaws to the Cooperation Minister. There are several more hurdles to overcome after that. We can complete all procedures soon,” Vijayakrishnan said.

The proposed airline is being modelled on the successful Cochin International Airport Ltd (CIAL) model. The company is expected to raise funds from cooperative institutions and NRIs, while aircraft will be operated on a lease basis to reduce the initial capital burden.

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

Under the proposed funding structure, around 200 cooperative societies are expected to contribute ₹2 crore each towards the initial capital. The proposal also envisages the Chief Minister as the company's chairman and the Cooperation Minister as its vice-chairman.

The airline aims to make air travel more accessible, with proposed ticket prices ranging from ₹3,500 to ₹7,000, comparable to fares for high-speed train services. It also plans to introduce discounted last-minute fares for unsold seats up to an hour before departure, helping passengers access cheaper tickets while improving seat utilisation.

The project is expected to generate around 200 jobs during its initial phase. Longer-term plans include establishing aviation training institutes alongside the airline, creating further opportunities for employment and skill development in the aviation sector.

With nearly 200 cooperative societies reportedly expressing their willingness to invest and the state government having granted in-principle approval, the promoters are preparing to advance to the next stage of the project. However, further regulatory, operational and financial requirements will have to be completed before commercial flight services can begin.