The Hindu Business Line : CIAL to trim landing charges by 2007

COCHIN International Airport Ltd, the first airport in the country built with private participation, plans to take head on the competition from upcoming airports in Bangalore and Hyderabad by reducing landing charges and improving facilities, its Managing Director, Mr V.J. Kurian, has said.

"By 2007, we will be reducing landing charges as we will be debt-free," Mr Kurian said here on Thursday at a function organised by the Kerala Management Association.

Cochin International Airport (CIAL) will be in a position to do away with the landing charges by 2012, he said. "Because by that time we feel that other income activities of the airport will take care of the revenue stream of the company."

Five-star hotels, a convention centre, shopping malls and a golf course are envisaged as part of the expansion of the airport in the future. Consulting firm Ernst & Young has been mandated to prepare a report on the future expansion projects of CIAL, Mr Kurian said.

He said the airport was currently investing Rs 55 crore in improving the facilities for passengers as well as for the landing of the aircraft. Even the newly launched Airbus 380, the biggest aircraft in the world, can land in CIAL by July this year, well ahead of the aircraft's proposed entry into the airline service in 2006.

The investment of Rs 55 crore is being mobilised through term loans and from internal resources.

Mr Kurian said CIAL was contemplating to launch a low cost airline. "Next month, we will give a report to the State Government. If the Government approves, it will take a year (for the airlines) to take off," he said.

On CIAL's financial performance, Mr Kurian said the airport would register "much better profits" in the current financial year. The number of passengers travelling through the airport is expected to reach 15 lakh during the year, up from 13 lakh in 2003-04.

CIAL made a net profit of Rs 22.11 crore in the last fiscal on gross revenues of Rs 8,5.26 crore.

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