The Hindu Business Line : CIAL embarks on diversification plan

Cochin International Airport Ltd (CIAL), the first Indian venture in the civil aviation sector with private participation, has proposed to embark on various diversified activities, including construction of airports in various parts of the country, using its expertise in the field.

Small airports

The CIAL Managing Director, Mr Sriram Bharat, pointed out that about 35 new small airports are slated to come up in different parts of the country in view of the growing tourism potential.

The company has held initial discussions with Maharashtra and Uttar Pradesh governments in this regard to offer its services, he said.

The eight-year-old CIAL, which earned global acclaim for commissioning the Kochi international airport in record time with lowest gestation period, was in a position to quote the lowest tender rates for such projects and was confident of commissioning such projects in the shortest possible time, Mr Bharat said.

He was speaking to media persons at the airport in connection with handing over the key of a luxury flat in the city to the winner of a lucky draw, organised as part of CIAL’s sales promotional programme of its Duty Free Shop in association with Diageo, a multinational premium drinks business and city-based Holy Faith Builders.

Other plans

The other plans of the company to earn non-operational revenue included setting up of a SEZ; construction of Rs 100 crore warehousing facilities using the surplus land for handling export cargo especially perishable goods, a golf course of international standards etc.

Referring to the commencement of a new airline service by CIAL, Mr Bharat said this would be a profitable proposition in the wake of the Civil Aviation Ministry’s proposal to go in for an early open sky policy.

The proposal is taking final shape and it would definitely tap the growing traffic on the Gulf sector, he said.

The Managing Director pointed out that the Duty Free Shop, operated jointly by CIAL and the multinational Alpha Kreol, has achieved a 40 per cent sales growth for the third year in succession.

It has earned a profit of Rs 32 crore in 2006-07 against Rs 22 crore in the previous fiscal.

During the current fiscal, it has targeted a profit of Rs 42 crore.

CIAL would be able to do away with aircraft landing charges and offer several other concessions to the airport users if it succeeded in maintaining its present tempo of operational growth in revenue.

The CIAL, he said, is projecting revenue of Rs 125 crore for the current financial year against an earning of Rs 112 crore during 2006-07. The airport has recorded a profit of Rs 37 crore in 2006-07, he said.

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