16 September 2012
Muscat: Launching Air Kerala -" the south Indian state of Kerala's own airlines to the Gulf sector -" will not ease travel woes of Indian expats in the region, the state's former industries minister said.
"When the Government of India has failed completely in operating the Air India and Air India Express services to the Gulf sector, I don't believe that the state government will be able to operate a new private-public partnership airline for the benefit of expats,- Elamaram Kareem, Kerala's former state minister for industries and commerce, said.
"Air India and Air India Express are run with government funds. The government should initiate steps to make these airlines function properly for the benefit of the people. If they are managed professionally, then it would be helpful for the poor expats,- the ex-minister said while adding that the new Air Kerala, which comes with the private partnership, will be unaffordable for the poor expats.
On Friday, a meeting of the Board of Directors of Air Kerala decided to launch the proposed airline with an initial capital of Rs20 billion (RO1 is equal to Rs143 approximately) as soon the central government grants it exemption from a couple of norms to start international operations.
"We are not against the Air Kerala plan. We are only stressing that the government should focus more on steps to improve the condition of government-run operations,- the ex-minister added.
According to the plans, 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 earmarked Rs10,000 (approximately RO75) as the minimum investment to be a shareholder, Kerala chief minister Oommen Chandy 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,- he added.
Chandy said Prime Minister Manmohan Singh was in favour of granting exemption (from the norms) to Air Kerala 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.
V.J. Kurian, Managing Director of Air Kerala, said that the feasibility report was likely to be obtained within three-and-a-half months. "We look at almost 200,000 people participating in the airline venture initially. This unique model means that the shareholders will be passengers also,- Kurian said.
Yousuf Ali, member of the Board, said there was already an offer to invest Rs1 billion in the proposed airline.
Muscat: Launching Air Kerala -" the south Indian state of Kerala's own airlines to the Gulf sector -" will not ease travel woes of Indian expats in the region, the state's former industries minister said.
"When the Government of India has failed completely in operating the Air India and Air India Express services to the Gulf sector, I don't believe that the state government will be able to operate a new private-public partnership airline for the benefit of expats,- Elamaram Kareem, Kerala's former state minister for industries and commerce, said.
"Air India and Air India Express are run with government funds. The government should initiate steps to make these airlines function properly for the benefit of the people. If they are managed professionally, then it would be helpful for the poor expats,- the ex-minister said while adding that the new Air Kerala, which comes with the private partnership, will be unaffordable for the poor expats.
On Friday, a meeting of the Board of Directors of Air Kerala decided to launch the proposed airline with an initial capital of Rs20 billion (RO1 is equal to Rs143 approximately) as soon the central government grants it exemption from a couple of norms to start international operations.
"We are not against the Air Kerala plan. We are only stressing that the government should focus more on steps to improve the condition of government-run operations,- the ex-minister added.
According to the plans, 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 earmarked Rs10,000 (approximately RO75) as the minimum investment to be a shareholder, Kerala chief minister Oommen Chandy 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,- he added.
Chandy said Prime Minister Manmohan Singh was in favour of granting exemption (from the norms) to Air Kerala 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.
V.J. Kurian, Managing Director of Air Kerala, said that the feasibility report was likely to be obtained within three-and-a-half months. "We look at almost 200,000 people participating in the airline venture initially. This unique model means that the shareholders will be passengers also,- Kurian said.
Yousuf Ali, member of the Board, said there was already an offer to invest Rs1 billion in the proposed airline.
© Times of Oman 2012
