Kochi, Kerala: Kerala has taken a step towards expanding the cooperative movement into the aviation sector, with Chief Minister V.D. Satheesan announcing government approval for the Keralam Civil Aviation Development Cooperative Society to launch flight services. The proposed venture is being presented as India’s first airline initiative led by the cooperative sector.
Speaking at the silver jubilee celebrations of the Calicut City Service Cooperative Society, Satheesan said the project would be spearheaded by C.N. Vijayakrishnan, Chairman of MVR Cancer Centre and Research Institute. A team associated with Vijayakrishnan’s cooperative initiatives is expected to support the implementation of the project.
Tentatively named Co-Keralam, the proposed airline aims to make domestic air travel faster and more affordable. The initial plan envisages leasing two 72-seater aircraft, with Kochi serving as the operational base.
The proposed routes would connect Kerala with destinations including Kozhikode, Kannur, Bengaluru, Mangaluru, Chennai, Coimbatore and Madurai.
According to the proposal, ticket prices would range from ₹3,500 to ₹7,000. The fleet could be expanded as operations develop and demand increases.
The original financing proposal envisages participation from around 200 cooperative societies, with each society expected to invest ₹2 crore.
The project’s promoters have said the venture would follow the model of Cochin International Airport, which was developed through a broad-based investment structure, and would not require financial assistance from the state government.
The proposed investment framework seeks to bring cooperative institutions together to mobilise resources for an aviation venture, a sector that typically requires substantial capital and operational expertise.
Beyond regional air connectivity, the project is expected to create employment opportunities and could support aviation training initiatives.
If implemented successfully, the venture would mark a significant expansion of the cooperative sector beyond its traditional areas of banking, agriculture and rural development. It could also provide an example of how cooperative institutions can combine resources to enter capital-intensive industries and deliver services to the wider public.
Satheesan also highlighted the importance of protecting depositors and strengthening public confidence in cooperative institutions. He cautioned against corruption and the misuse of people’s money, underlining the need for accountability and responsible financial management within the cooperative sector.
The proposed airline’s progress will depend on the development of its financing structure, aircraft leasing arrangements, regulatory approvals and operational plans. Its implementation could open a new avenue for cooperative-led enterprise in Kerala’s transport and aviation sectors.