What India's Newest Regional Airline Says About Aviation

Skift

07-05-2025

Air Kerala is set to join a wave of airlines coming up in India. The carrier's niche positioning: Offering low-cost direct connectivity to Kerala expats based in the Middle East.
Upstart regional airline Air Kerala is India's latest ultra-low-cost carrier and hopes to begin flying by the end of June after receiving its IATA flight code, "KD."
While it will initially operate domestically, the plan is to expand internationally, especially to the Middle East to serve the UAE and Gulf-based non-resident Keralites, a significant target audience for Air Kerala.
While major airlines like Air India and IndiGo are expanding their fleet for international expansion, smaller Indian airlines are also adding more planes to respond to the growing demand from regional markets. Akasa Air, which commenced operations less than three years ago, this week announced the arrival of its 28th aircraft.
Last month, regional airline Star Air's fleet expanded to 10 aircraft. The airline also has plans to undertake rapid expansion by adding 15 new sectors to its schedule.
Goa-based regional airline Fly91 is also expanding its fleet and last month, purchased two ATR 72-600 aircraft shortly after completing a year of operations. It is soon expecting another plane to join the fleet, taking it to four jets. Fly91 plans to induct 30 aircraft manufactured by European manufacturer ATR over the next five years.
Last year, another Kerala-based airline Alhind Air received the initial approval of Indian aviation regulator Directorate General of Civil Aviation (DGCA). While it was planning to commence service by the end of 2024, it has not yet taken off.
Afi Ahmed, Air Kerala's Dubai-based founder and chairman, said that it is looking to have 1,000 employees by the end of this year.
In March 2025 alone, India's domestic air traffic stood at 14.5 million passengers, a nearly 9% year-on-year increase, according to data from DGCA.
Biggest Takeaways from Indian Hotels Company Earnings
Indian Hotels Company Limited (IHCL) reported its highest-ever full-year performance in fiscal 2025, driven by solid domestic travel demand and limited additions to hotel supply. 'Strong domestic business travel demand, coupled with mega wins like the Kumbh Mela, international music concerts like Coldplay and a strong wedding season, were the key demand drivers this year,' IHCL CEO Puneet Chhatwal said at an earnings call on Monday.
Chhatwal said the company plans to invest over INR 12 billion (approximately $142 million) in fiscal 2026. This includes asset upgrades, new projects, and investments focused on the Taj brand and digital infrastructure.
IHCL is placing more emphasis on attracting international travelers. Referencing projections of 28 million foreign arrivals by 2030 — a nearly 40% increase over pre-pandemic levels—Chhatwal noted the potential for growth in inbound tourism. The company has allocated INR 250 million ($3 million) over three years to promote India abroad.
An insight that has resonated over the last 10 quarters is the shrinking of booking windows. Outside peak seasons, like school holidays, summer breaks and Christmas holidays, Indian travelers are planning getaways as little as 12–24 hours in advance, Chhatwal said.
Beyond its core hotels, IHCL's 'new and reimagined' ventures are scaling fast. Qmin, the company's grab-and-go food concept spun off from Ginger, has expanded to 72 outlets.
IHCL's loyalty program Tata Neu surpassed 10 million members in fiscal 2025. Also, bookings made via direct channels jumped 43% to over INR 22 billion ($261 million).
Sikkim Could Get a New Airport for Tourism Boost
The Northeast Indian state of Sikkim is likely to get a new airport to boost tourism, Indian minister of state for social justice Ramdas Athawale said. This was in response to increasing demand for an all-weather international airport in Sikkim. The existing Pakyong airport often faces visibility challenges that lead to service interruptions for months.
Between January and March this year, over 450,000 domestic tourists visited Sikkim, according to data by the tourism and civil aviation department. In the first two months of the year, over 17,000 international tourists also visited the state. Based on these numbers, tourism authorities are expecting 1.6 million domestic visitors and 100,000 global tourists to visit Sikkim by the end of the year.
Andhra Pradesh to Upgrade 500 Homestays
The Andhra Pradesh government has identified more than 500 homestays across the state to be upgraded by August this year. These properties include homes in tribal regions, heritage homes, and urban properties.
At present, nearly 600 existing homestays in the religious hub of Tirupati are being sensitized and enhanced with the support of platforms like AirBnB, Oyo Homes, Homestays of India, and MakeMyTrip.
The state's chief minister N Chandrababu Naidu has asked the tourism department to ensure that the homestays maintain high standards. Andhra Pradesh is also looking to develop work from home options around all major tourist destinations.
Radisson Expands Portfolio in Siliguri
Radisson Hotel Group has signed Radisson Blu-branded property in West Bengal's Siliguri. The 105-key hotel marks the company's first Radisson Blu hotel and overall second property in the city.
The group is aiming to cater to leisure, business, MICE, and wedding travelers through this property. As the city serves as a key gateway to Northeast India, this is a part of Radisson's strategy to solidify its presence in key emerging markets, according to Nikhil Sharma, COO for South Asia.
Last month, the hospitality chain's portfolio in India crossed 200 properties, including operational and developing hotels. 'India is one of our key markets in Asia where we will further amplify our growth and create more possibilities and opportunities to our guests, owners, and positively impact the local communities,' Elie Younes, executive vice president and global chief development officer at Radisson said.
Tourism in Dharamshala Dips Despite Cricket Matches
Dharamshala in Himachal Pradesh is hosting three matches of the ongoing Indian Premier League (IPL) cricket tournament. However, despite the matches, the city has not been witnessing a rise in tourism, even as the tournament is leading to a tourism and economic boom across different venues in India.
While hotels in lower Dharamshala have an occupancy rate of 70%, those in lower Dharamshala areas have only about 35-40% occupancy, according to media reports. Hoteliers said that the muted tourist influx is due to the tensions with Pakistan following the terrorist attack in Kashmir last month.