The project Kerala Air was dropped long back..., Just political gimmicks for the Global Investors Meet. Mr yousuf Ali the chairman of EMKE group is planning about starting an airline. He is planning to take over any NOC holding company rather than applying for an NOC. Guys its only on the planning stages and he has not taken any decision on go ahead.
Even Narendra Modi had a plan to revive Gujrat Airways & Central government rejected that proposal saying it will create bad effects on the Aviation Industry and more states will start applying causing a huge capacity vs Demand Ratio. Eventually everything will close down.
Government gave 12 companies NOC to operate Scheduled/Regional Airline In India in the last 4 years including Freedom Aviation, Star Aviation, Air Dravida, Emric Air , Kareena Airways out of which 9 have dropped their Projects after getting the NOC.
Good news is that Couple of Airlines will launch their commercial operations by the new year (2013) from south India including Air Costa.
Regards