New Budget Airline for Kerala

Khaleej Times Online: “Kerala firm on launching new airline

From our correspondent

25 November 2005

TRIVANDRUM — Kerala Government has decided to go ahead with the proposal to start a budget airline to Gulf destinations and also set up a fourth international airport at Kannur, Chief Minister Oommen Chandy said.

Chief Minister Oommen Chandy said his Cabinet had discussed the issues in detail and appointed a Cabinet sub-committee to come out with a report on the effective implementation of the Kannur airport project. The sub-committee comprising Finance Minister Vakkom Purushothaman, Revenue Minister K.M. Mani, Tourism Minister K.C. Venugopal, PWD Minister M.K. Muneer and Fisheries Minister Dominic Presentation was asked to submit a report on whether the airport should be taken up on BOT basis or adopt successful model of the Nedumbassery Airport near Cochin. The committee’s recommendations would come up before the next Cabinet meeting, he said.

In case of budget airline, the government would send the detailed project report submitted by Ernst & Young for vetting by the Finance Department. The report would be discussed at the next Cabinet meeting.

He said the state government was aware of inspired reports originating from New Delhi on perceived objections by the Federal Government towards the budget airline. Kerala Government was to request the Federal Government formally to give three exemptions from regulatory guidelines for the airlines to fly abroad.

Asked about the reports that the Federal Government was not willing to relax the norms, Chandy said the reports were on the basis of informal discussions in the Civil Aviation Ministry.”