• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Port Info

• Ships in Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

C.J. Punnathara

Kochi March 2

WITH the submission of the interim report by Ernst & Young next month, the Cochin International Airport Ltd (CIAL) will diversify from areas of core competence such as aviation to seemingly unrelated fields such as convention centre, golf course, hotels, logistics centre, multiplexes, amusement parks etc.

"With the unveiling of a more liberal open-skies policy which will unleash fierce competition in the Indian skies, we have to think out of the box in order to hold our own and also to grow in the emerging keenly competitive market," Mr V.J. Kurian, Managing Director of CIAL, told Business Line.

This does not mean that the needs of the aviation sector would be overlooked. Major programmes to expand the existing international terminal are already under way. An additional 35,000 square metres space would be added to the existing international terminal of 13,000 square metres.

As the first phase of this expansion programme, 13,000 square metres would be added to the terminal in May 2005. Construction of a parallel taxi track and two more bays for aircraft are also under consideration. This expansion programme has become imperative as the airport today handles 183 flights a week - of which 107 are international - 4,500 passengers a day and 1,500 tonnes of cargo a month.

But in the emerging scenario, Mr Kurian predicted that landing charges and other fees collected from flights and passengers will no longer be the major source of income for the aviation industry. Competing airports will try and woo the flights and passengers to their tarmac by lowering landing charges and other duties.

CIAL will diversify its sources of income to other spheres as well, in order to survive and grow in this competitive scenario, Mr Kurian said.

The main objective behind the diversification scheme is to attract more flights and passengers to CIAL and add more sources of revenue. The strengths behind the project is the 4,500 passengers who arrive at the airport daily. In addition, there would be an average of three people who come to see off or receive them.

The airport is far from the city and the visitors and passengers have been seeking alternative avenues of entertainment and shopping facilities while they are at the airport. CIAL has 1,300 acres of land of which 400 acres have been lying vacant.

It was in this background that the airport commissioned Ernst & Young last November to do a feasibility study on how to go about the project, up to the tendering stage. The terms and reference also included exploring all options for funding the project as well.

The 400 acres itself could be the equity participation of CIAL for the project. Or the airport could construct buildings on this land and hand it over on lease. All options will be explored, Mr Kurian said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Nagarjuna Construction secures new orders

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line