KOCHI: Every year, Cochin International Airport Ltd (CIAL) quietly recycles a familiar explanation in its annual report.
It pertains to one of its subsidiaries that has failed to move beyond paperwork for nearly two decades: Air Kerala International Services Ltd (AKISL).
Registered in 2006 with the ambition of launching a low-cost airline connecting Kerala to the Gulf, Air Kerala today exists more as a balance sheet placeholder than a functioning business.
In its 2023–25 annual report too (FY25 report is yet to come out), CIAL once again attributes the airline’s continued non-starter status to a clause in the 2016 National Civil Aviation Policy.
The clause requires that airlines seeking to operate international flights must allocate at least 20 aircraft, or 20 per cent of their fleet, to domestic operations.
“The company has found that this condition is not very conducive to the successful operation of the airline,” the report says, echoing nearly identical language from previous years.
The repetition is striking, especially given the significant changes that have taken place in the industry. The earlier 5/20 rule, which had originally required five years of domestic operations before an airline could fly internationally, was scrapped in 2016.
Several new private players have since entered the market and met the current fleet requirement – yet Air Kerala, backed by a state-owned airport operator, continues to cite the same policy as an insurmountable hurdle.
In the meantime, a different version of Air Kerala is preparing to enter the skies. In July 2024, UAE-based Malayali businessman Afi Ahmed announced plans to use the Air Kerala domain name, which he owns, to launch scheduled commuter air services within the state.
His proposed airline aims to tap into regional routes, bringing affordable connectivity to smaller airports across Kerala.
New avatar of Air Kerala
Ironically, it is a Non-Resident Keralite who is now actively pushing forward a vision that was originally floated to serve the NRK community.
The contrast is telling. While the name Air Kerala remains locked inside CIAL’s books, associated with a net loss of just Rs1.74 lakh in FY24, Afi’s version may soon put aircraft in the air.
The inertia is even more glaring when viewed against the performance of CIAL’s other subsidiaries. In FY24, CIAL Dutyfree and Retail Services Ltd posted a net profit of Rs16.44 crore, CIAL Infrastructures Ltd earned Rs10.86 crore, and Cochin International Aviation Services Ltd recorded Rs8.03 crore.
These businesses have found commercial traction and strategic direction. Air Kerala, by contrast, has become an annual afterthought – a legacy idea without lift-off.
The original project, proposed in 2005 during Oommen Chandy’s tenure as Chief Minister, was revived briefly in 2011 but deferred again in 2015, pending policy clarity. That clarity arrived with the 2016 policy overhaul. Yet despite that, Air Kerala remains grounded, with the same justification reprinted year after year.
The recurring question now is no longer about rules or policy frameworks. It is about intent. If a small private entrepreneur can move towards making Air Kerala a reality under the same regulatory regime, what exactly is stopping the government-owned CIAL from doing the same?
Nearly two decades after it was conceived, Air Kerala remains a symbol of lost momentum. And with another Air Kerala preparing for actual takeoff, CIAL’s version risks becoming a historical footnote – an airline that existed only on paper, long after others had taken to the skies.
