Government of Kerala backs plan for India’s first cooperative airline

By the Editorial Team · Thursday, October 29, 2026

Kerala has approved the creation of India’s first cooperative airline, Co-keralam, which plans to operate affordable regional flights from Kochi to seven destinations using two leased aircraft. The initiative, funded by around 200 cooperative societies without state government aid, aims to enhance southern India's air connectivity through a unique cooperative business model pending regulatory and operational finalizations.

The government of Kerala has approved a proposal to establish India’s first cooperative airline, aiming to enhance regional air connectivity in southern India with affordable fares. The carrier, tentatively named Co-keralam, plans to launch operations from Kochi using two leased aircraft with a capacity of 72 passengers each.

Co-keralam’s initial route network is expected to cover seven destinations, including Kozhikode, Kannur, Bengaluru, Mangaluru, Chennai, Coimbatore, and Madurai. The airline intends to offer flights starting at 3,500 rupees, aiming to provide cost-effective travel options within the region.

The project is structured as a cooperative-sector initiative, with plans to raise approximately Rs4 billion through investments from around 200 cooperative societies, each contributing Rs20 million. If successful, Co-keralam would become the first Indian airline to operate under this cooperative model. The promoters, led by C.N. Vijayakrishnan—chairman of MVR Cancer Center and Research Institute—are drawing on his experience with cooperative-sector ventures.

The financing approach is inspired by the model used to develop Cochin International Airport, which involved multiple investors and operated without direct financial assistance from the Kerala government. Likewise, the airline project does not expect to require state government funding.

Kerala Chief Minister V.D. Satheesan highlighted the initiative as a demonstration of the cooperative sector’s potential to expand into commercial aviation. Speaking at an event in Kozhikode, he noted the venture would showcase Kerala’s cooperative sector capabilities on a broader scale.

While the project framework has been outlined, key operational details remain to be finalized. These include the confirmed launch date, detailed flight schedules, and ticket booking procedures. The airline’s ability to meet its low-fare commitments and establish scheduled services will depend on securing necessary regulatory approvals, finalizing investments, and setting up operational logistics.

The cooperative airline project in Kerala represents a novel effort to combine cooperative finance with regional air transport, aiming to boost connectivity and affordability in southern India’s aviation sector.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.