NEDUMBASSERY: The aircraft maintenance hangar proposed by the Cochin International Airport is expected to become operational within a year, by May 2007, V.J. Kurian, the outgoing Managing Director of the airport company said here on Wednesday.

He said a new company by the name Cochin International Aviation Services Limited has already been registered for this purpose.

The airport has allocated 33 acres of land for the project, the piling work of which is scheduled to start next week.

Mr. Kurian was addressing a press conference, possibly his last as the head of the airport company before taking up his new assignment as the Chairman of the Spices Board within a couple of days.

He said that the airport would have 51 per cent shareholding in the new company while the remaining 49 per cent shares would be held by Licensed Aircraft Maintenance Engineers (LAME).

The total project cost comes to Rs.35 crores with the airport investing Rs.10.2 crores and LAMEs chipping in with Rs.9.8 crores.

The balance Rs.15 crores would be acquired by way of a term loan, he said.

Mr. Kurian said a large number of Malayali aircraft engineers presently working with various airlines, both outside the State and the country, had expressed interest in the project. He hoped that with their cooperation the venture would turn out to be a success.

He said the project had great potential for generating employment opportunities for technically qualified unemployed.

The shareholding engineers while working for the company could also impart training to prospective engineers thereby enabling them to secure a job.

The airport had fixed a nominal rent for the land allocated and would be entitled to around 3 per cent of the gross revenue as royalty once the maintenance hangar turned operational, he said.

Elaborating on the potential of such a venture, Mr. Kurian said that currently only Air-India, Indian (formerly Indian Airlines) and Jet Airways have maintenance hangars.

He said that at present 200 aircraft crisscross the Indian skies and this is estimated to rise to 435 within the next three years, presenting enormous scope for a maintenance hangar.

He pointed out that currently most airlines approached Gulf countries, Hong Kong, Singapore and Portugal for maintenance.

The labour cost accounted for 80 per cent of the total maintenance charges, he said hinting that the proposed hangar could attract potential clients by providing cost effective service.

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