Zettfly Aviation to raise Rs250 crore in pvt placement
Bhaskar Raj
DUBAI: Kochi-based Zettfly Aviation said it had received the initial No Objection Certificate (NOC) from India’s civil aviation ministry to operate a low-cost airline named Air Kerala.
The promoters, UAE-based businessmen Afi Ahmed and Ayub Kallada, said the company was permitted to operate scheduled commuter air transport services for three years.
They claimed that Air Kerala will be the first regional airline of Kerala with its hub in Kochi.
Last year, Afi Ahmed, also the founder of travel agency Smart Travels, paid a local company Dh1 million (Rs22.7 million) for the domain name airkerala.com.
With this, he began reviving the hopes of Air Kerala, a project first touted by the government of Kerala in 2005, but failed to take wings.
The promoters said the airline will start flying domestic routes in the first quarter of 2025 on obtaining the necessary regulatory and technical approvals.
“Our next steps involve acquiring aircraft and complying with the necessary regulatory requirements to obtain the Air Operator’s Certificate (AOC),” Afi Ahmed said.
“Initially, we plan to start operations with three ATR 72-600 aircraft. We are currently exploring options in both the leasing market and direct procurement from manufacturers to ensure we have the best possible fleet for our operations,” Ahmed added.
“Our initial operations will focus on regional connectivity. We plan to connect Tier 2 and Tier 3 cities with Tier 1 cities and metros. This will help improve accessibility and convenience for travellers across these regions.”
International flights are part of the airline’s future operations. As per the Directorate General of Civil Aviation (DGCA) guidelines, domestic airlines can fly internationally if they have a minimum fleet size of 20 aircraft. Earlier, international flight operations were permitted after a minimum of five years of domestic service.
Zettfly Aviation is floated with a paid-up capital of Rs200 million (Rs20 crore) and the equity base will be expanded to Rs1 billion (Rs100 crore) by roping in more investors, including NRI businessmen, the promoters said.
“Later, as and when we require more working capital, we plan to mobilise up to Rs2.5 billion (Rs250 crore) through the private placement route,” said Ayub Kallada, one of the promoters.
“In the second round of funding, we plan to mobilise enough resources to have the critical fleet size. Once we expand our fleet to 20 aircraft, we will start exploring international routes to expand our reach and service offerings,” said Ahmed.
He said the aviation company has already recruited key personnel, including technical experts to start operations upon receiving all the regulatory and technical approvals from the appropriate authorities.
