Keralam has taken a significant step towards making aviation part of the cooperative movement, with Chief Minister V.D. Satheesan announcing government approval for the Keralam Civil Aviation Development Cooperative Society to launch flight services. The initiative is being projected as India’s first airline venture from 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 the successful cooperative initiatives of Vijayakrishnan will help implement the ambitious venture.
Tentatively named Co-Keralam, the airline aims to make domestic air travel faster and more affordable. The initial proposal envisages leasing two 72-seater aircraft based at Kochi, connecting Keralam with destinations including Kozhikode, Kannur, Bengaluru, Mangaluru, Chennai, Coimbatore and Madurai.
The proposed fares range from Rs 3,500 to Rs 7,000, with plans to expand the fleet as operations grow.
The original financing proposal envisaged participation by around 200 cooperative societies, each investing Rs 2 crore. The promoters have said the project would follow the Cochin International Airport model and would not require financial assistance from the state government.
The venture is also expected to generate employment and potentially support aviation training initiatives.
The development represents an important expansion of the cooperative sector beyond its traditional fields of banking, agriculture and rural development. If successfully implemented, the airline could demonstrate how cooperative institutions can pool resources to enter capital-intensive sectors and provide services to the wider public.
Satheesan also reiterated the importance of protecting depositors and strengthening public confidence in cooperative institutions, while warning against corruption and the misuse of people’s money.
