The document discusses plans for developing Kannur International Airport in Kerala, India. Phase 1 of the airport's development from 2015-2025 has a total projected cost of $300 million. It will have a 3,050 meter runway capable of handling large aircraft. The airport is expected to handle over 1 million international passengers and over 400,000 domestic passengers by 2025-2026, growing significantly by 2045-2046. The airport aims to serve the large non-resident Keralite population in Middle East as well as promote regional connectivity and tourism.

1. G. CHANDRAMOULI
MANAGING DIRECTOR
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
few years
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
US
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
route (2006)
 Operation, Management and Transfer (OMT) 6 Airports through PPP.
 Greenfield Airports
 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
regional hubs.
 Places of major tourist attraction covered.
 Business hubs covered.
 Project span – next 2 years. Work on many of these has
begun.
 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
regional level
 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
east
 Surge in international and domestic tourism will further boost regional
airports.
 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
medium term.
 Competition from from competing modes of transport-rail
and road.
 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.

8. 3/18/2022
● 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.

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Proposed International Airport is located
in the North Malabar Region of Kerala in
Kannur District.
Airport Site is 22 Km. from Kannur Rly
Station .
- 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

12. Cochin
58%
Trivandrum
31%
Calicut
11%
DomesticFlight Movementfor the Year 2012-13
Total Movements - 33,948

13. Kerala Airports Traffic Share Data
Trivandru
m
9.88
30%
cochin
19.61
60%
Calicut
3.11
10%
Trivandrum
cochin
Calicut
Domestic Passenger movement 2012-13
Total Passengers – 32.6 Lakhs
Cochin

14. Cochin
43%
Trivandrum
30%
Calicut
27%
InternationalFlightMovementfor the Year 2012-13
Total Movements -47,538

15. Kerala Airports Traffic Share Data
Trivandru
m, 18.5,
28%
cochin,
29.1, 43%
Calicut,
19.62,
29%
Trivandrum
cochin
Calicut
International Passenger movement 2012-13
Total Passengers – 67.22 Lakhs

16. Kerala Airports Traffic Share Data
Trivandru
m, 48243,
41%
cochin,
43048,
36%
Calicut,
27612,
23% Trivandrum
cochin
Calicut
Total Cargo Movement 2012-13 – 1,18,903 Ton

17. 3/18/2022
Passenger(Million) 2016-17 2025-26 2045-46
International 1.65 4.25 16.14
Domestic 0.14 0.42 1.66
Aircraft Movements
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

18. 3/18/2022
Middle East Destinations
(UAE, Saudi Arabia, Kuwait, Bharain, etc.)
South-East Destinations
(Hongkong, Singapore, Kuala Lumpur, etc.)
Catchment Area
KERALA STATE KARNATAKA STATE
KANNUR
KASARKODE
CALICUT
WAYANAD
COORG DIST.
MYSORE

19. 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
components

20. STRENGTH
• GoK and State run PSU has a stake of
51%.
• Land Acquisition completed
• Suitable for all types of Aircrafts
operating in this sector
• Strong catchment area with maximum
NRK population
• ICAO/ CAR Complaint Airport planned.
WEAKNESS
• 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
requirements.
OPPORTUNITIES
• Traffic study shows very good traffic
potential
• GoK PSU are planning to develop
Business hubs in the District.
• A sizable land available for exploiting
non Aero Revenue.
THREATS
• Construction and Expansion of similar
Airports in nearby location may divert
traffic
• International Traffic is totally dependent
on NoRK from Middle East any adverse
impact on the opportunities of Keralites
will have serious impact on Business
plan.