Kochi, Feb 10: The Kerala government will consider the possibility of restarting passenger shipping services on the Kochi-Gulf sector if Air India failed to consider the persistent demand for reduction of air fares on this busiest sector, Kerala Parliamentary and Norka Minister M M Hassan said today. Talking to mediapersons here, he said three Gulf-based companies had already signed Memorandum of Understanding (MoU) with the state government on setting up of passenger vessels on this sector. These companies had also demanded the Kerala government's share participation in this venture. The state transport department would also hold discussions with the Cochin Port Trust on alleviating the problems with regard to berthing of passenger vessels which the shipping companies had encountered when a trial service was conducted earlier, he said.
Mr Hassan said the government was under pressure from Gulf-based Malayalees and their organisations to persuade AI to introduce budget airlines with cheaper fares on the gulf sector which was the most profitable sector for the national carrier.
The Gulf Malayalees had already begun boycotting air India on this issue after the Oman, Qatar and Sri Lankan Airways reduced fares on this sector, he said.

Mr Hassan said Kerala Chief Minister A K Antony had also held discussions on this issue with Air India Chairman Thulasidas during his recent visit to Kerala. But the AI was still delaying decision on the matter for various reasons. The state government had already exempted all foreign airlines from paying sales tax on aviation turbine fuel (ATF) which was applicable to AI'S international flights also.
Bureau Report