Air Kerala, the proposed airline promoted by UAE-based Malayali entrepreneurs, has taken a significant step towards getting off the ground, with the company set to acquire up to 20 Russian-made Il-114-300 regional aircraft.
The development could help Air Kerala overcome one of the biggest hurdles that has delayed its launch — securing aircraft. The airline had earlier struggled to lease planes because of stringent financial conditions imposed by lessors.
The proposed aircraft arrangement was announced during the Innoprom India exhibition in New Delhi, where Russia’s United Aircraft Corporation (UAC), part of state-owned Rostec, signed agreements with Indian aviation companies for more than 80 Il-114-300 aircraft. Air Kerala is among the prospective operators, with plans for up to 20 aircraft.
Air Kerala had initially planned to launch operations in 2025. However, its efforts to lease aircraft ran into financial hurdles.
Aircraft lessors had reportedly sought either:
Advance payment equivalent to one year’s lease rentals, or
A bank balance of around ₹200 crore as financial security.
The difficulty in meeting these conditions delayed the airline’s plans. Buying aircraft directly from Russia could offer Air Kerala an alternative route to building its fleet.
The Il-114-300 is a turboprop aircraft designed primarily for regional air services.
Key features include:
Seating capacity of up to 68 passengers
Range of around 1,400 km with passengers
Two TV7-117ST-01 engines
Capability to operate from smaller airports and relatively short runways
Designed for regional connectivity under India’s UDAN scheme
UAC says the aircraft is designed to support regional air services from smaller airports and can also be adapted for cargo, medical and rescue operations.
For Air Kerala, the aircraft could therefore fit an initial strategy of connecting smaller cities rather than immediately competing on high-density metro routes.
Air Kerala is expected to begin with regional services under the UDAN scheme, connecting smaller cities and towns.
This could give the airline a relatively focused entry strategy, allowing it to build its network before expanding into larger domestic markets.
The Il-114-300 is being positioned by Russia as an aircraft suited to this segment, with its smaller capacity and ability to operate from airports with less extensive infrastructure.
The aircraft arrangement does not by itself mean that Air Kerala can begin commercial operations immediately.
The airline received a no-objection certificate from the Ministry of Civil Aviation in July 2024 and has obtained its IATA airline code. However, it has yet to secure its Air Operator Certificate (AOC) from the Directorate General of Civil Aviation.
One of the factors that has complicated the AOC process has been the need to demonstrate that the airline has access to its own aircraft.
The proposed purchase could therefore be an important step towards meeting that requirement.
Air Kerala is being promoted by UAE-based Malayali entrepreneurs Afi Ahmed and Ayub Kallada.
Afi Ahmed is the chairman
Ayub Kallada is the vice-chairman
Harish Moideen Kutty is the chief executive officer
Harish has more than three decades of experience in the aviation industry, including stints with Air Arabia, SalamAir and SpiceJet.
The promoters had originally planned to base the airline's operations at Kochi.
Air Kerala's proposed aircraft acquisition is part of a much larger Russian push into India's regional aviation market.
At the Innoprom India exhibition, agreements were announced involving 105 Il-114-300 aircraft for Indian operators, including:
50 aircraft for Pinnacle Air
Up to 20 aircraft for Air Kerala
35 aircraft linked to Sleek Aviation
Russia is also discussing the possibility of localising aircraft production in India. UAC has said discussions on manufacturing its SJ-100 regional jet in India are more than 80 percent complete.
For Air Kerala, however, the immediate question is not just acquiring aircraft but converting the proposed arrangement into firm contracts, completing regulatory requirements and putting the operational infrastructure in place.
The airline's Russian connection could nevertheless provide a possible way around the aircraft-leasing roadblock that has held back its launch.
If the aircraft deal progresses as planned and the remaining regulatory hurdles are cleared, Air Kerala could finally move closer to its long-delayed ambition of taking off from Kochi.
