A meeting of the Board of Directors of Air Kerala here on Friday decided to launch the proposed airline with an initial capital of Rs. 200 crore as soon the Union government grants it exemption from a couple of norms to start international operations.
The State government, Cochin International Airport Ltd. and public sector undertakings will together hold 26 per cent of the shares of the company. The public will hold the rest, with non-resident Keralites expected to take a major share. The Board has set Rs. 10,000 as the minimum investment to be a shareholder, Chief Minister Oommen Chandy told presspersons after the meeting held on the sidelines of the Emerging Kerala summit.
He said Ernst & Young, consultants, had been asked to submit an updated feasibility report for the airline as the initial report was drafted some six years ago.
Mr. Chandy said Prime Minister Manmohan Singh was in favour of granting exemption to Air Kerala from the norms stipulating that an airline should have a fleet of 20 aircraft and five years’ experience in domestic operations before it can fly to international destinations.