Dubai businessman Afi Ahmed, who is leading the development of Air Kerala, has announced that the new Indian airline aims to launch domestic operations in the first quarter of next year, with plans to expand internationally by 2026.
Key Developments and Future Plans
NOC Secured: The airline, backed by Zettfly Aviation, has secured an initial no-objection certificate (NOC) from India’s Civil Aviation Ministry, a significant milestone in its journey. “The first step is the NOC, it’s one of the biggest tasks and that task is now covered,” said Afi Ahmed, chairman of Zettfly Aviation.
Technical Preparations: Over the next six to eight months, the focus will shift to technical preparations, including finalizing flight details and contracts with engineering companies.
Fleet and Funding: Air Kerala plans to start operations with three ATR 72-600 aircraft, eventually growing its fleet to 20 aircraft for international routes. The company is considering both leasing and purchasing options for the aircraft. Initial funding requirements are estimated to be between ₹60 crore and ₹100 crore ($7.1 million to $11.9 million), with expansion costs projected to reach ₹250 crore to ₹300 crore.
Background and Revival
Origins and Challenges: The concept of Air Kerala was first introduced by the Kerala state government in 2005, and the airline was registered as a subsidiary of Cochin International Airport in 2006. Despite initial enthusiasm, the project faced multiple delays and was shelved by successive governments.
Revival Efforts: Afi Ahmed, founder of Dubai tourism agency Smart Travels, purchased the domain name airkerala.com for Dh1 million ($270,000) last year, reigniting plans for the airline.
Market Potential
Growing Aviation Sector: India’s aviation sector is on an upward trajectory, with domestic traffic expected to grow by 6% to 8% annually, reaching up to 164 million passengers by March 2025. International traffic is projected to grow at a faster rate of 9% to 11%, reaching up to 78 million passengers during the same period.
Target Market: Initially, Air Kerala will serve cities within Kerala and other parts of India that lack sufficient connectivity. The airline’s ultra-low-cost model and commitment to punctuality are expected to be its main selling points.
Strategic Partnerships and Funding
Public-Private Partnerships: The company is open to forming public-private partnerships with the Kerala state government and is also seeking collaboration with expatriates and external investors to accelerate its expansion plans.
Expatriate Support: With a significant Malayali diaspora, particularly in the Gulf region, Air Kerala is confident in gaining substantial support for its international routes.
Future Outlook
Operational Challenges: Ahmed anticipates that the airline will operate at a loss for the first two years, with profitability expected in the third and fourth years of operations.
Market Strategy: The airline is focused on maintaining ultra-low costs to remain competitive. Ahmed stated that the airline is not limited to specific destinations within the UAE and will consider opportunities in various cities, including Fujairah, to optimize its market presence.
As Air Kerala prepares to launch, it promises to bring new connectivity options and competitive pricing to the Indian aviation market, with a clear focus on serving both domestic and international travelers efficiently.
