G.

CHANDRAMOULI
MANAGING DIRECTOR
KANNUR INTERNATIONAL AIRPORT LTD.
India has a tremendous potential
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
Source: CAPA, WEF, AAI
 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.
 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

 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.
 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.
 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

9/30/2013
 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
Kannur District.
Airport Site is 22 Km. from Kannur Rly
k Station .
- Nearest Functional Airports
● CALICUT INT’L AIRPORT - 120 KM
● MYSORE AIRPORT - 160 KM
k ● MANGALORE INT’L AIRPORT - 170 KM
● COCHIN INT’L AIRPORT - 260 KM
● TRIVANDRUM INT’L AIRPORT - 475 KM

c
c
k

t
 Domestic Flight Movement for the Year 2012-13
Calicut
Total Movements - 33,948
11%

Trivandrum
31% Cochin
58%
Kerala Airports Traffic Share Data

Domestic Passenger movement 2012-13

Total Passengers – 32.6 Lakhs
Calicut Trivandru
3.11 m
10% 9.88
30%
Trivandrum
cochin
Cochin
cochin Calicut
19.61
60%
International Flight Movement for the Year 2012-13
Total Movements - 47,538

Calicut
27%
Cochin
43%

Trivandrum
30%
Kerala Airports Traffic Share Data

International Passenger movement 2012-13

Total Passengers – 67.22 Lakhs

Trivandru
Calicut,
m, 18.5,
19.62, Trivandrum
28%
29%
cochin
Calicut

cochin,
29.1, 43%
Kerala Airports Traffic Share Data

Total Cargo Movement 2012-13 – 1,18,903 Ton

Calicut,
27612,
23% Trivandru
m, 48243, Trivandrum
41% cochin
Calicut
cochin,
43048,
36%
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

9/30/2013
Middle East Destinations
(UAE, Saudi Arabia, Kuwait, Bharain, etc.)

South-East Destinations
(Hongkong, Singapore, Kuala Lumpur, etc.)

Catchment Area
KERALA STATE KARNATAKA STATE
KANNUR COORG DIST.
KASARKODE MYSORE
CALICUT
WAYANAD

9/30/2013
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
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.
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.
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.
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.