Kerala Government to go with Air Kerala project

21 Nov 2012
On Wednesday Kerala Government announced that they have decided to go with Air Kerala project to operate flights to GULF sector.”A study on the project during the previous UDF regime had found that the project is feasible. The present government has asked for an update on the project,” Chief Minister Oommen Chandy told reporters during the cabinet briefing.He said government cannot abandon the project because of the ‘indifferent’ attitude of Air India towards passengers from Kerala to the Gulf region.

The proposed state-run airline Air Kerala plans to raise Rs. 200 crore through equity as initial capital. While 26 per cent shares will be held by government, Cochin International Air Port Limited and public sector undertakings, the remaining 74 per cent will be held by shareholders.Kerala has sought speedy approval from the Centre for launching the state-run airline Air Kerala, that will primarily cater to Keralites living in the Gulf region.Kerala also pointed out that the Centre has relaxed norms for Air India Express holding, a subsidiary of Air India and so the same should also be given to Air Kerala.

Source-http://www.ndtv.com/article/south/kerala-government-to-go-ahead-with-air-kerala-project-295374

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