The Hindu : Kerala / Kochi News : CIAL registers high growth

Online edition of India's National Newspaper
Friday, Dec 30, 2005

Kerala

Kerala - Kochi

CIAL registers high growth

Increase in flight services in the domestic and international sector

NEDUMBASSERY: The Cochin International Airport Limited (CIAL) is set to scale new heights registering all round progress besides preparing to embark on a multi-crore investment programme.

Having registered a turnover of Rs.100.26 crores in the preceding financial year, the airport company has continued with its successful ways during the current fiscal and is well on the path to post higher growth.

Ranked third in the world in terms of balance between investment and profit, Cochin International Airport Ltd. is regarded as the most successful investment venture of the State.

The airport has registered progressive growth in net profit from Rs. 21.11 crores in 2003-04 to Rs. 28.79 in 2004-05. The airport company has also distributed a dividend of 10 per cent to its shareholders for the fiscal 2004-'05 compared to 8 per cent in the preceding fiscal.

Ranked fourth in the country in terms of international flight operations, the CIAL witnessed considerable increase in the number of flight services, both in the international and domestic sectors. Two international carriers, including Mahan Air, a Teheran-based airline, and Air-India Express, the no-frills subsidiary of the national carrier Air-India, launched its operations from the Cochin International Airport this year.

Nine foreign carriers now operate services from Kochi — Oman Air, Gulf Air, Saudi Arabian Airlines, Kuwait Airways, Srilankan Airlines, Emirates, Qatar Airways, Silk Air.

Domestic sector services from Kochi were augmented with the arrival of three carriers; Kingfisher Airlines; promoted by the UB Group, Air Deccan, the first domestic budget airline of the country; and Paramount Airways, promoted by a Madurai-based industrial house. Domestic passenger movement registered impressive growth.

The airport handles 104 domestic services and 114 international services in a week. The international passenger movement increased from 8,61,004 in 2003-04 to 10,06,158 in 2004-05, a growth of 16.86 per cent, whereas domestic passenger movement posted a growth of 25.12 per cent from 4,71,597 to 5,90,054 for the same period.

Cargo movement through the airport has also shown an upward trend with imports increasing from 3,841.82 tonnes in 2003-04 to 5,181.60 tonnes in 2004-05, a growth of 34.87 per cent. Exports increased from 9,484 tonnes to 13,092.70 tonnes, a growth of 38.05 per cent.

The airport received a facelift this year with the opening of the new arrival block of the international terminal, which is capable of handling 1,200 passengers at a time. The three-storied fully air-conditioned building with a total built up area of 1.78-lakh sq.ft, was constructed at a cost of Rs. 19 crores.

The new block houses a two-storied duty free shop with built up space of 14,000 sq.ft. and is the biggest duty free shop of the country.

With the completion of the new departure block, which is expected to be completed next year, the total built up area of the international terminal would go up to 4.80 lakh sq.ft

Another achievement was the construction of a new apron capable of handling A-380, the biggest passenger aircraft in the world, at a cost of Rs. 2.3 crores. With this, the Cochin International Airport became the first in the country to fulfil the requirements for handling the `big bird', which is set to take to the skies by the end of 2006 or early 2007.

The airport company has drawn up extensive plans estimated to cost Rs.3,500 crores for commercially utilising the 179 hectares of land at its disposal. This includes an aircraft maintenance hangar, which is expected to become operational within a year. Other projects envisaged include free zone logistic centre, 18-hole golf course, convention centre with seating capacity for 4,000, star hotels, exhibition halls, shopping complex, gems & jewellery park, family entertainment complex, including amusement park and go-carting track, etc.

A centre for perishable cargo planned by the airport company in association with the APEDA (Agricultural and Processed Food Products Export Development Authority), is expected to be completed by April next. The Memorandum of Understanding for the project was signed in May 2004. With the completion of the centre, the Cochin International Airport would become the second largest exporting centre of perishable cargo in the country.

The airport company, however, is set to a face a challenge as its last Director Board meeting chaired by Chief Minister, Oommen Chandy, has decided to stop collecting user's fees from international passengers travelling from the airport from next year. The decision was in accordance with the longstanding demand of Keralites in Gulf.

User's fee collected at the rate of Rs. 500 per passenger made an annual contribution of Rs. 2 crores a month towards income. Following the board meeting, V. J. Kurian, Managing Director of CIAL, had made clear that the company would intensify the efforts to take up ground handling to cut short the loss.

Meanwhile, the Government has decided to go ahead with the airline project, Air Kerala, in the joint sector in which CIAL would hold 26 per cent stake.

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