Total investment in four years estimated to be in the region of Rs450cr
KOCHI: In the first place, please don’t confuse between the Air Kerala project recently announced by Afi Ahmed and Ayub Kallada, the co-founders of Zettfly Aviation, with the one registered as a subsidiary of the Cochin International Airport Ltd (CIAL) way back in March 2006.
While Afi Ahmed, the chairman of the company, and Ayub Kallada are busy chalking out plans to give wings to their new incarnation of Air Kerala, CIAL’s project has been languishing on paper for close to two decades now
Though the Kerala Government, especially the former Chief Minister, late Oommen Chandy, had held the Air Kerala project close to the heart devoid of fruition, CIAL, the technical owner of Air Kerala, reportedly decided in 2015 to keep the project on hold until a clear direction emerges. And the status quo still remains.
Talking to businessbenchmark.news from Dubai, Afi Ahmed, the chairman of the company behind the new avatar of Air Kerala project, said the airline is expected to take off within one year and is likely to break even within three to four years.
“We intend to invest about Rs60 crore to Rs70 crore in the near term itself, and within four year from now, the investment in the project will likely reach about Rs450 crore in all, Ahmed said.
Breakeven in three years
He said once the project is set in motion, shares of the new company to be floated for the airline, will be offered to pravasi shareholders so that the expatriates community will have chance to participate in the equity of the airline project, which will certainly help in the smooth journey of the company forward.
“That said, as per our current plans, we both – Afi Ahmed and Ayub Kallada, the vice-chairman of the company, will retain a majority stake in the project between ourselves, though a lot of investment enquiries are flowing in from high net worth individuals and businesspeople from different parts of the world,” Ahmed told businessbenchmark.news.
To buy three ATR aircraft
He also said the company plans to buy three pre-owned ATR 72-600 aircraft to begin with, and thereafter the fleet will mostly be built with leased aircraft. Afi said his team is in talks with several airlines negotiating on the purchase deal.
As Ahmed says, the ultimate aim of the company is to accomplish the dream of creating an airline to primarily serve international routes, particularly the GCC.
To a query on what will be his ‘magic wand’ to turn the project into a profitable venture, even as several airlines are struggling to stay afloat as a project, Ahmed said, “This will be the first ultra low-cost airline in the county and hence we will be able to offer tickets at very competitive rates, but without burning a hole in the company’s pocket,” he added.
