Kerala, a state renowned for its powerful co-operative movement, is embarking on its next major ambition: launching India's first airline in the co-operative sector. The man tasked with getting this audacious project off the ground is C.N. Vijayakrishnan.
A 'People's Airline' for Kerala
On October 26, 2026, Kerala's Chief Minister V.D. Satheesan officially announced government approval for the Kerala Civil Aviation Development Cooperative Society to launch flight services. Tentatively named 'Co-Keralam', the airline aims to enhance regional connectivity and provide more affordable air travel options. The initial plan involves leasing two 72-seater aircraft to operate out of Kochi. Proposed routes would connect the state's own hubs like Kozhikode and Kannur with major South Indian cities including Bengaluru, Chennai, Mangaluru, Coimbatore, and Madurai. With proposed fares ranging from ₹3,500 to ₹7,000, the airline hopes to demonstrate that the co-operative model can expand beyond its traditional strongholds of banking and agriculture into capital-intensive sectors like aviation.
The Leader: C N Vijayakrishnan
At the helm of this ambitious project is C.N. Vijayakrishnan, a prominent figure in Kerala's co-operative landscape. While he has a background in politics with the Communist Marxist Party (CMP), his reputation is built on successfully executing large-scale projects through the co-operative model. He is best known as the chairman and founder of the MVR Cancer Centre and Research Institute in Kozhikode and the Calicut City Service Cooperative Bank, both of which are considered major successes. The government's announcement highlighted that the same team that contributed to the success of these institutions would be involved in launching the airline, lending significant credibility to the venture. Vijayakrishnan's track record of turning complex, people-funded initiatives into reality is seen as the driving force and a key asset for the airline's prospects.
The Co-Operative Model Explained
Unlike a typical private airline owned by a corporation or a government-run carrier, Co-Keralam aims to be funded and owned by the people, or more specifically, by other co_operative societies. The financing plan proposes that around 200 of Kerala's many co_operative societies will invest ₹2 crore each, raising a potential initial capital of ₹400 crore. This approach mirrors the public_participation model that led to the successful creation of Cochin International Airport (CIAL), India’s first public_private partnership airport, though Co_Keralam is structured as a pure co_operative venture. The state has a long and celebrated history of co_operative success, from the Uralungal Labour Contract Co_operative Society (ULCCS) founded in 1925 to thousands of credit societies, banks, and consumer stores that form the backbone of the rural and urban economy. This airline is being positioned as the next great social experiment in that tradition.
Significant Hurdles on the Runway
Despite the optimism and strong local backing, the path forward is fraught with challenges. The Indian aviation market is notoriously difficult, characterised by intense competition, high operational costs, and thin profit margins. Recent history is filled with airlines that failed to sustain operations. For any new entrant, securing reliable aircraft, navigating complex regulations from the Directorate General of Civil Aviation (DGCA), and managing volatile fuel prices are major hurdles. The dream of a Kerala_centric airline is not new; the 'Air Kerala' project, first proposed in 2005 and backed by CIAL, has been stalled for years due to regulatory issues and other challenges, highlighting the difficulty of launching regional carriers. Even recently launched private airlines in Kerala have faced delays due to geopolitical tensions and investment woes, underscoring the tough market conditions Co_Keralam will face.
