Approval delayed for Air Kerala and Al Hind airlines: What’s causing it?

Air Kerala and Al Hind Air, touted as Kerala’s own airline companies, are facing hurdles due to a stand taken by the foreign companies leasing the aircraft. The leasing companies have demanded that the airline companies pay rent for 12 months in advance or show a bank balance of Rs 200 crore.

Both airline companies currently in the third stage of acquiring an Air Operator Certificate must demonstrate the presence of at least one aircraft in their fleet to progress to the fourth stage. They can’t get the AOC from the DGCA without fulfilling this requirement. Meanwhile, a national media reported that Shankh Air, based in Uttar Pradesh, is also facing the same challenge.

Al Hind Air and Air Kerala had received NOC from the central government in 2024 itself. Both companies were hoping to start operating their first flights by June 2025. Meanwhile, Air Kerala had received KD as its service code from the International Air Transport Association (IATA) in May last year.

Why are the leasing companies adamant?
Air Kerala and Al Hind Air plan to operate airline services from the Gulf region to various airports in Kerala in the initial phase and then expand services to other foreign sectors. The companies leasing out the aircraft are being adamant in their demands, as a few airline companies in India, including Go First, are on the verge of filing for bankruptcy. Meanwhile, Al Hind Air and Air Kerala have not made an official statement on the matter yet.

Air Kerala had opened its head office in Kochi in April last year. The company is already spending a hefty amount on managing the office and paying the salaries of the employees. They will be able to earn income only if the flights take off after securing the necessary approvals. The companies now urge the central government to intervene in the matter.