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G. K. Nair

The Cochin International Airport terminal at Nedumbassery. The airport handled 10 lakh passengers last fiscal, overtaking Thiruvananthapuram and Kolkata to become the fourth in terms of passenger throughput.

THE Cochin International Airport at Nedumbassery, the country's first in the private sector, claims to have become the fourth in India in terms of passenger traffic.

Speaking to Business Line, Mr V. J. Kurian, Managing Director, Cochin International Airport Limited (CIAL), said the airport handled 10 lakh passengers last fiscal and going by growth trend the figure could cross 12 lakh in 2003-04. With this the airport would become the fourth, after Mumbai, Delhi and Chennai, in terms of passenger throughput. It has overtaken Thiruvananthapuram and Calcutta, he claimed.

Passenger traffic at the Cochin International Airport has increased with more foreign airlines landing.

Now, eight foreign carriers — Saudia, Qatar, Oman, Emirates, Gulf Air, Silk Air, Sri Lankan and Kuwait Airways — in addition to Air India, Indian Airlines, Sahara and Jet Airways operate to and from the airport. Lufthansa is expected to come in from next year, he said.

Last year, the airport handled 6,309 and 7,137 international and domestic flights. For April-October 2003, the figures were 4,919 and 4,553 respectively. Mr Kurian said that 160 flights operate from the airport every week of which 98 are international and 62 domestic.

There had been a substantial growth in the passenger traffic, both international and domestic, because of the availability of more flights to different destinations, he said.

The airport handled 5,90,718 international passengers in 2002-03 against 3,15,109 in 2000-01, while the number of domestic passengers ranged from 4.5 lakhs to 4.2 lakhs. Thus, the total passenger traffic has increased to 10,10,286 in 2002-03 from 7,72,711 in 2000-01. In the seven months of this fiscal, the total traffic stood at 7,52,995.

There had also been an increase in the handling of cargo, which had gone up to over 1,000 tonnes per month from 557 tonnes in April 2001. There is good potential for enhancing cargo traffic. "We are taking a number of steps to improve this segment," Mr Kurian said.

Discussions are on between the CIAL and various airlines and cargo agents in Tirupur, Karur and Coimbatore to route consignments through this airport.

Anticipating an increase in the goods traffic, the space in the cargo complex had been increased to 6,000 sq. metre from 2,000 sq. metre, he said. About 35 per cent of the cargo handled is perishable and the rest general items such as textiles, spices, and oleoresins mainly to the EU and the US, he said.

The CIAL, which has been in the red ever since it was commissioned in June 1999, posted a profit of Rs 12.55 crore in 2002-03. "We are targeting a profit of Rs 25 crore this fiscal," Mr Kurian said.

The company had completed a one-time settlement (OTS) with the HUDCO, the major financier of the airport project.

This has resulted in substantial savings on interest payments. Under the OTS, the company has to repay Rs 172 crore of which the CIAL has paid Rs 120 crore and the balance may be converted into HUDCO's equity in the airport company, he said. The CIAL, he said, had taken loan at 7 per cent to liquidate the high-cost HUDCO loan.

The CIAL has enhanced its equity base to Rs 200 crore. The paid-up capital is Rs 148 crore. Once the Centre takes a decision on HUDCO's equity participation, the paid-up capital would go up to Rs 200 crore, he said.

With the improvement in the financial situation, the CIAL has prepared a master plan "as to how to go ahead with expansion of the airport," Mr Kurian said.

Under the plan a new block would be added to the international terminal building. This would increase the capacity by 50 per cent.

Besides, a parallel taxi track, apron and two bays would be developed. These would involve an investment of Rs 45 crore. One of the bays would be capable of accommodating Airbus 380, which has a passenger capacity of 555. This would allow Emirates and Qatar Airlines, to bring this aircraft. Also, 60 acres have been earmarked for creating aircraft maintenance facilities.

In addition a draft plan for developing a golf course, a convention centre, an exhibition hall and a hotel complex on some 165 acres is being prepared.

Also on the drawing board is a logistics centre, which will have on 60 acres bonded warehouses, jewellery and gem units, he said.

Discussions are on with the authorities at the Kerala State Industrial Development Corporation, the Special Economic Zone (SEZ) and major jewellers.

The airport was developed in the private sector at a total cost of Rs 230 crore financed by an equity of Rs 90 crore, which has now been expanded to Rs 200 crore, and term loan of Rs 140 crore.

The major stakeholders in the CIAL are the Kerala government and the State public sector undertakings with 26 per cent, and the rest held by State Bank of Travancore, Federal Bank, BPCL, Air India, NRIs and the public.

According to Mr Kurian, if the cost of air travel goes down, there could be a significant growth in the domestic tourist arrivals via Nedumbassery. Besides, "we will have to promote ourselves with the airlines in ASEAN countries," Mr Kurian said.

Initiatives have also been made to request Sri Lankan to operate to Maldives via Kochi so as to attract tourists going to the island nation to Kerala also. "Hopefully," Mr Kurian said, "by the year-end it will operate."

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