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Airport to back real estate development

Kozhikode-based property developers are waking up to the concept of serviced flats.

Kozhikode-based property developers are waking up to the concept of serviced apartments and self-catering apartments with the expansion of the Karipur airport.

A few builders have evinced interest in launching projects within a month. “A couple of builders have come out with proposals. However, the concept will gain momentum only when more airline companies operate flights from the Calicut airport to W est Asia,” says Nityananda Kamath, secretary of the Kozhikode chapter of the Kerala Builders’ Forum.

At present, 360 flights operate in the domestic and international sectors from the airport. The average movement is 50 flights daily, 85 per cent of which are international. Air-India Express, Indian, Jet Airways, SriLankan Airlines, Kingfisher Airlines, Air Arabia and RAK Airways operate from here.

“The airport handled 2.5 lakh passengers in the domestic sector and 12 lakh in the international sector. It also handled cargo of 8,000 to 9,000 tonnes in the previous year,” says Deepak Shastri, Airport Director.

More flights

“The number is certainly going to increase. Emirates, Oman Air, Qatar Airways, Etihad Airways, will launch operations to various sectors in the coming months.”

With several airline companies beginning operations to the Gulf sector, 40 per cent of those from north Kerala who take connecting flights from the Nedumbassery airport to fly to the U.S. and the U.K. will shift to the Karipur airport. Airline companies such as Emirates and Qatar Airways have transit points. “Connectivity to Europe and America will be easier,” says M. Muzammil, chairman, Federation of North Kerala Chambers of Commerce and Industry.

The private operators that now run weekly services plan to expand and convert the schedules into daily flights. Besides, others airlines, such as Singapore-based Silkair, are looking forward to commence operations, he says.

Mr. Muzammil says these activities call for more accommodation in the city. At least 1,000 serviced apartments need to be set up in the city, suburbs or nearby areas such as Ramanattukara and Feroke. The airline companies that operate flights in the Gulf sector will start services to European and other Asian countries as well.

However, Mr. Kamath feels that the city, as of now, is not experiencing a shortage of housing. “In any case, we are going for a survey of occupancy at hotels in the city,” he said.

At the same time, the hotels that accommodate the crew of the airline companies are setting up additional rooms. These are Taj Residency, Kadavu Resort and Fortune Hotels. A package is offered to the most of them. Most hotels witness a high-level of occupancy, says Vipin Das, Front Office Manager, Fortune Hotel.

A few airline companies have begun scouting for apartments. No company wants to take on rent rooms at star hotels. It can be unaffordable particularly when most operate on low tariff and prices and taxes on aviation turbine fuel rule high.

Mr. Shastri says that the expansion of the airport will have a tremendous impact mostly importantly in the service sector for the city.

BIJU GOVIND

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