Strong GDP growth, a young population and the expansion of India’s vibrant middle class have catapulted India’s economy (which is already 4th largest today and expected to be 3rd largest by 2050) as the fastest growing economy in the world. This will obviously result in India achieving some of the fastest growth of any aviation market in the world over the next 20 years.
1. G. CHANDRAMOULI
KANNUR INTERNATIONAL AIRPORT LTD.
2. With 16% CAGR, India ATI set to be among top 3 civil aviation markets
globally, therefore making it a highly attractive market
Second Fastest growing, 4th largest economy in world
International traffic will exceed 80m PAX p.a.; Domestic to reach 160m-
180m PAX p.a.
Traffic to likely to grow 1.5-2 times GDP growth as it has during the last
Tremendous growth potential with only less than 2% Indians travel by air
per year i.e. 0.04 trips per capita as compared to 0.15 of China and 2.2 of
Innovation potential is complemented by the following:
Availability of large pool of skilled resources
India as powerhouse of IT and Outsourcing
India has a tremendous potential
Source: CAPA, WEF, AAI
3. Metro Airports
Delhi & Mumbai, the two major International Airports restructured through JV
Operation, Management and Transfer (OMT) 6 Airports through PPP.
New Greenfield Airports at Kochi , Hyderabad and Bangalore
Non Metro Airports/ Regional airports
State owned AAI completed modernization of select non-metro Airports.
City side development of non-metro Airports through PPP.
4. Important for regional connectivity and development of
Places of major tourist attraction covered.
Business hubs covered.
Project span – next 2 years. Work on many of these has
Investment required - US $ 1.3 billion.
City side development (land use plans), through PPP mode
5. There is a huge growth opportunity in smaller towns due to increase in
middle class group.
With increase in per capita GDP, there is appetite to move to air travel at
With increase in costs, airlines will see regional airports as their HUB
Airports like Kannur where in there is huge opportunity for international
traffic to middle east as approx 20% of the population is employed in middle
Surge in international and domestic tourism will further boost regional
Enhancement of Non Aero Revenues.
6. Airports have started competing with each other with more
Private players getting in to the Airport Business.
Limited traffic at these airports in short run.
High costs of obtaining services for reserved activities such as
ATC, Security, etc.
Limited revenue generation opportunities in the short to
Competition from from competing modes of transport-rail
No assurances from airlines in short run.
7. Business Model
PPP basis and on a build-own-operate (BOO) model.
KIAL is a Public Limited Company set up by the Government
of Kerala to build and operate Kannur International Airport.
The proposed equity structure of the company is as follows:
Authorized share capital INR 1,000 Cr .
26% by the State Government (in the form of land).
23% for the State-owned Public Sector Organizations.
2% for government sponsored companies.
49% by small investors and institutional investors.
● The new International Airport is to be developed in 2000 Acres of land.
● Phase wise development of Airport
1. Phase-I 2015-2025
2. Phase-II 2025-2045
The total project cost for Phase I is USD 300 Million
● Project implementation Schedule
● Award of EPC-I Oct-2013 (30 MONTHS Covering All Air side Works)
● Award of EPC-II April-2014 (24 Months Covers Terminal , Technical
Block cum Control Tower)
● Commencement of Commercial Operations - April 2016
9. Airport Code 4E Type suitable for B-747-400 / B-777-300 ER
Runway length for (07/25) – Phase-I 3050 M (3400 M).
Fuel farm and fuel hydrants (JV with BPCL/KIAL).
Airport Terminal (Green Building Concept)Three level operation.
Intergerated for Domestic and International - 50,000 Sq. Mtr.
Technical block with ATC Tower 35 Mt. Height.
Car Parking for 700 Cars and 25 Buses.
Airport will be fully compliant with CAR / ICAO requirements.
Proposed International Airport is located
in the North Malabar Region of Kerala in
Airport Site is 22 Km. from Kannur Rly
- Nearest Functional Airports
● CALICUT INT’L AIRPORT - 120 KM
● MYSORE AIRPORT - 160 KM
● MANGALORE INT’L AIRPORT - 170 KM
● COCHIN INT’L AIRPORT - 260 KM
● TRIVANDRUM INT’L AIRPORT - 475 KM
DomesticFlight Movementfor the Year 2012-13
Total Movements - 33,948
12. Kerala Airports Traffic Share Data
Domestic Passenger movement 2012-13
Total Passengers – 32.6 Lakhs
InternationalFlightMovementfor the Year 2012-13
Total Movements -47,538
14. Kerala Airports Traffic Share Data
International Passenger movement 2012-13
Total Passengers – 67.22 Lakhs
15. Kerala Airports Traffic Share Data
Total Cargo Movement 2012-13 – 1,18,903 Ton
Passenger(Million) 2016-17 2025-26 2045-46
International 1.65 4.25 16.14
Domestic 0.14 0.42 1.66
International 14,746 33,984 1,07,590
Domestic 2,245 5,654 16,647
Cargo in MT 20,926 60,758 3,39,645
Middle East Destinations
(UAE, Saudi Arabia, Kuwait, Bharain, etc.)
(Hongkong, Singapore, Kuala Lumpur, etc.)
KERALA STATE KARNATAKA STATE
18. Airport has more than 700 Acres identified for Non Aero revenue and
scope for development of Aerotropolis.
CUPPS to result in a common, standardized system platform for agent-facing
common-use implementations at Airports.
Airport Operations Control Center (AOCC) The AOCC focusses on the end-
to-end processes . Driver the collaborative decision making (CDM) processes
around specific issues across all stakeholders.
Data Center Infrastructure Management (DCIM) is an emerging form of data
center management which extends the more traditional systems and network
management approaches to now include the physical and asset-level
• GoK and State run PSU has a stake of
• Land Acquisition completed
• Suitable for all types of Aircrafts
operating in this sector
• Strong catchment area with maximum
• ICAO/ CAR Complaint Airport planned.
• Equity for Phase 1 is yet to be tied up.
• EPC contracts are yet to be awarded.
• Access road to Airport yet to be
developed by State Authorities.
• In the initial years cash flow are not
adequate to meet Debt servicing
• Traffic study shows very good traffic
• GoK PSU are planning to develop
Business hubs in the District.
• A sizable land available for exploiting
non Aero Revenue.
• Construction and Expansion of similar
Airports in nearby location may divert
• International Traffic is totally dependent
on NoRK from Middle East any adverse
impact on the opportunities of Keralites
will have serious impact on Business