Kerala has approved a proposal to launch an airline under the cooperative sector, with around 200 cooperative societies expected to contribute to the venture. Chief Minister V. D. Satheesan announced the approval on October 25, positioning the initiative as India’s first airline project led by cooperative institutions.
The venture, proposed under the name Co-Keralam, will be spearheaded by C. N. Vijayakrishnan, chairman of MVR Cancer Centre and Research Institute. The airline is being developed through the Kerala Civil Aviation Development Cooperative Society, with the aim of providing faster and more affordable domestic air travel.
The initial plan envisages leasing two 72-seat aircraft, with Kochi serving as the operational base. Proposed routes will connect the city with Kozhikode, Kannur, Bengaluru, Mangaluru, Chennai, Coimbatore and Madurai. The promoters plan to expand the fleet as operations develop.
The proposed funding model involves approximately 200 cooperative societies investing ₹2 crore each, creating an initial investment pool of around ₹400 crore. The project is expected to follow a model similar to Cochin International Airport, which was established with participation from multiple investors, including non-resident Indians. The promoters have stated that the airline would not require direct financial assistance from the state government.
Ticket prices are expected to range from ₹3,500 to ₹7,000, according to the proposal announced earlier by the project’s promoters. The airline also aims to generate employment and explore aviation training initiatives alongside its flight operations.
The state government’s approval marks a key step towards advancing the proposal. The airline will still need to complete the applicable regulatory and operational requirements before commencing commercial services.
The initiative extends Kerala’s cooperative sector into aviation, a capital-intensive industry traditionally dominated by private and public-sector operators. Its progress will depend on the final funding structure, aircraft leasing arrangements, regulatory clearances and the ability to sustain affordable fares while maintaining operational viability.
