Kerala-based travel services operator Alhind Group has received the Civil Aviation Ministry’s initial nod to start an airline — Alhind Air. This takes the group’s ambition to enter India’s fast-growing aviation sector a step closer.

Alhind Group is looking to start airline operations by the end of this year after receiving another important clearance, the Air Operator Certificate (AOC) from the Directorate General of Civil Aviation.

A top official of the group told CNBC-TV18 that the proposed airline will start flying with three ATR-72 turboprop planes with an initial investment of ₹200 crore to ₹500 crore as it adds more planes into the fleet.

“We will have five ATR planes in total to fly on regional routes. We have secured all support from Cochin International Airport for our operations,” the official told CNBC-TV18.

Alhind Air plans to initially fly on regional routes in the southern part connecting Cochin with Bengaluru, Thiruvananthapuram and Chennai, among other routes with the ATR planes.

The upcoming airline is looking to expand its operations across India and operate as a domestic carrier as it adds narrow-body passenger planes to its fleet.

Alhind Air aims to launch international flights after the fleet size increases to over 20 planes within two years after it commences operations.

“It’s a ₹2,000-crore, long-term project, we are in talks with leasing companies for ATR and narrow-body planes as well as Airbus and Boeing for new planes,” the official said, adding that the group has already started hiring people in the leadership roles.

Once this process is completed, the exercise for hiring pilots, cabin crew, engineers and other ground staff will start, the official said.

Alhind Group is one of the leading players in the travel and tourism industry in India and abroad.

The group which is also the General Sales Agent (GSA) for many airlines claims to have a turnover of over ₹20,000 crore and more than 130 offices in India and overseas.

Alhind Group offers services including air ticketing, holiday packages, Hajj-Umrah services, visa, and money exchange. The group’s promoter had earlier told CNBC-TV18 that the company has a network and customer base that makes it an ideal candidate for starting an airline.

The group is looking to tap the fast-expanding air traffic between India and the Gulf.

Valsaraj PV, the Managing Director of Alhind Group, had said that the company has a huge chunk of Hajj and Umrah traffic and is among the top five ticketing players for the West Asia and Far East countries.

Alhind Group’s revenue from the air ticketing business alone stands at over ₹600 crores per month, he had said.

“We are able to fill about 80% of planes. We have a deep-rooted sales network,” Valsaraj had said, replying to a question on what gives confidence to the group to foresee a successful airline.

“New airlines have the challenge of building a network. The advantage for us is that we have already built the network for the past 30 years, so we know how the market is, the exact route to be operated, and how profit is generated,” Valsaraj had said.