Cochin International Airport Ltd

By, Anila Joseph & Ajay Antony

An overview
Location : Nedumbassery Airport Type : Public Area : 1300 acres Distance from city : 28 Km Owned by : Cochin international Airport Society Limited IATA Code : COK

 Operator : Cochin International Airport Limited Runway : 27/09 - 3400m * 45m and a parallel taxiway Landing and parking : 13 bays, 5 Aero bridges, 11 remote bays Night landing facility Aircrafts handled from ATR A380 Airport rescue and fire fighting service (ARFF)

Security CISF

Ground handling agency AISATS, Bird Worldwide Flight Services-BWFS and Livewel Aviation Services. Air Asia, Air India, AIR INDIA EXPRESS , AirArabia, BAHRAIN AIR, Emirates, ETIHAD , GoAir, GulfAir, Indian Airlines, INDIGO , Jet AirWays, Jet Lite, KingFisher, Kuwait Airways, Oman Airways, Qatar Airways, Saudi Arabian Airlines, SILKAIR , SPICEJET , SriLankan Airlines

Some Statistics

Particulars Passenger movement Aircraft movement Cargo tonnage

Number 4340736 40, 419 40,808

Infrastructure
Domestic Terminal 1,00,000 sq. ft, 20 check-in counters, 5 security gates, waiting area for 400 passengers. International terminal 4,78,000 sq. ft, 37 check-in counters, 30 passport control counters, 10 security gates, 6 customs counters, in-line baggage screening system Airline center Cargo terminal - largest in India 1,20,00 sq. ft, CDC and CPC Cochin Duty Free shop 14,000 sq. ft Air traffic control Car parking facility for 1,100 cars

Why?????
The previous airstrip in the heart of the city was an airstrip used primarily by the navy for its fighter planes and it also allowed the civilian aircrafts as well. It could only cater to the Boeing 737 aircrafts with load restrictions as well as the runway was very short (4500 ft) The gulf boom of the 1980s saw a growth in the number of expatriates from cochin and other areas adjacent to it. First plan was to expand the naval airport which was rejected by the Navy sighting security reasons. The Trivandrum airport was also getting congested

Some history
The expansion of Naval runway was out of question The talks resulted in finding another appropriate place for the airport Shri. V. J Kurian IAS and MR. Raman Nair ( Tahsildar, Aluva) proposed the Nedumbassery area for the project Bad news came in the form of the inability of the central government to fund the project Mr. V. J Kurian proposed to float shares of CIAL and collect money from state government, PSU s and the general public. With equity participation from the Government of Kerala, Industrialists, NRIs, Financial Institutions, Airport Service Providers and the Public, the Cochin International Airport Limited thus came into being as a model enterprise with the first International Airport in India outside the ambit of the Government of India, the first of its kind in the history of civil aviation in India.

Time line
The laying of foundation stone of Cochin International Airport on 21.08.1994 Inauguration of Cochin international Airport on 25 May 1999 Declaration Of Cochin Airport as International Airport 2000 The first aircraft by Air India commenced its international operation on 10th June 1999 to Dammam. The Air India Jumbo Jet Boeing 747 touched down for the first time in Kerala on 21 June 1999. Domestic flight started on 01st July 1999.

Investment plan
CIAL company was registered in March 1994 for the mobilization of funds with an authorized capital of 90 crores. Total project cost was Rs. 230 crores

Items

Amount

Particulars

Term Loan

Rs. 140 cr

By HUDCO, SBT and Fedbank 51% by GOK, rest by AI, BPCL, NRIs, General public

Equity

90 cr

Land acquisition
As per the Land acquisition act of 1894 The airport authorities used a new option of negotiating with landowners to determine the compensation package. CIAL made price offers of Rs 4,000 6,500 per cent (a hundredth of an acre) of dry land and Rs 300 1,800 per cent of wet land (including paddy fields). The land for airport was acquired from about 2,300 landowners. 872 households shifted One member of the household promised direct employment 85 direct employment and 691 indirect employment In addition CIAL had to deal with socially sensitive issues like relocating three temples, two churches, a burial ground and a mystery tree which had acquired the status of a pilgrimage centre.

Risk mitigation
1) Political risk : non-continuity of political leadership and thus a strong national policy on air infrastructure was essential. 2) Revenue risk: by diversifying into non-aeronautical services like charter flights, cargo, the golf club etc. 3) Operating risk: cost escalation, staffing, labour etc which can be mitigated only through effective management. 4) Regulatory risk: uncertainty in licensing by DGCA, traffic fixation and revenue sharing with AAI.

Building the airport

AAI had agreed to provide technical advice and runway design to CIAL free of charge CIAL appointed KITCO, a state enterprise as technical consultants. government

KITCO was responsible for monitoring the progress of the project and coordination CIAL could also claim the distinction of not losing even one day of project time due to labour unrest, otherwise a common feature in Kerala

CIAL Operations
The airport was inaugurated by the President of India on 25 May 1999. Commercial operations started from June 1999 with Air India operating the first flight to the Gulf. Shortly afterwards the commercial enclave in the old airport was closed and domestic operations shifted to CIAL Kerala police was in charge of security initially National carriers would operate international flights

The airport project envisaged handling 17 flights a day during the first year of operations moving up to 31 flights a day in the fifth year of operations. AAI was the designated agency under the Airports Authority Act responsible for providing Air Traffic Control

AAI employees stationed at the old airport and the private airline company which had made investments there also acted as pressure groups against shifting domestic operations. There was also pressure from domestic travellers to keep the old terminal open and leave CIAL to handle international flights only 307 taxi operators from the old airport had approached the CIAL management demanding rights to operate taxi services Air India was to render ground services The responsibility of managing the cargo operations was entrusted to Air India on a revenue sharing basis. (15 per cent of cargo revenue would accrue to CIAL.) CIAL was able to obtain virtual monopoly of allowing chartered flights carrying pilgrims for performing Haj ceremony. The critical Instrument Landing System (ILS) commissioning was delayed because of the failure to acquire land and remove obstacles (including houses) that fell in the glide path of the aircraft. Lack of ILS was cited as a reason which delayed the international airport status for CIAL.

 Aircraft refueling was another revenue earning activity that was envisaged and oil companies had created necessary infrastructure, particularly a fuel hydrant system that could reduce refueling time considerably. The landing charges were fixed based on the weight of the aircraft. AI was not proactively marketing their services to exporters. Hence the facilities and capacity created by CIAL were unused. CIAL took over the cargo operations from AI and started to manage the operations with its own staff. In view of the increased threat perception to aircrafts and aviation infrastructure, GOI had unilaterally handed over the responsibility of airport security to a paramilitary force, Central Industrial Security Force (CISF).

Project Phases
The expansion plan stages- 4 phases Phase 1 The airport had 250,000 sq ft of floor space at its inauguration in 1999. In 2002 the original airport's floor area had risen to 300,000 sq ft due to the expansion of the international departures block. An exclusive terminal for international arrivals increased the floor space to 420,000 sq ft

Phase 2 An airline center complex of 58,000 sq ft - to accommodate offices of airlines operating from the airport and CIAL's administrative offices. The cargo terminal was also expanded in the second phase.

Phase 3
Started in 2007 to accommodate 5 million passenger movements annually. The commissioning of a central block connecting the domestic and international terminals Airside area was enlarged to accommodate:  More gates  Waiting areas  Increased shopping area s.  Increased the built up area by another 160,000 sq ft  The airside area of the international arrivals and departures blocks were integrated together and glass walls were installed to allow for more natural light. In 2008, the runway- re-surfaced.  The parking areas were increased from 12 to 18, including 2 dedicated for cargo airlines.  Completed the expansion of the cargo village and a second aircraft taxiway.

Phase 4
Originally planned to upgrade the domestic terminal. Plans got changed.

The current international terminal is planned to convert completely into Domestic terminal. With ;  Will have 5 aero-bridges  6 boarding gates facility  Increased parking bays.

The current domestic terminal would be converted into Royal Pavilion  Will handle VIP and private chartered flights and jets.

 The new international terminal at the eastern side of existing structure with;  The built up space -1,000,000 sq ft having segrated departures and arrivals at different levels.  16 aero-bridges and additional 30 parking bays.  A capacity to handle 4000 passengers  The arrivals will have 10 baggage carousels  Increased immigration facilities.  Expected to be commissioned by last quarter of 2014.

With completion - the total built up area of the airport -1,600,000 sq ft (will be third largest in the country, in terms of size.)

Current status
First Greenfield airport setup in the public private partnership (PPP) model in civil aviation infrastructure sector in India Employee strength - around 515 Easy access to all three National Highways passing through Kerala (NH 47, NH 17 and NH 49) 8 domestic airlines and 16 international airlines connect Kochi with nearly 40 destinations nationally and internationally. Parking space to accommodate 1,100 cars in addition to taxi queuing space, bus parking and other amenities like canteen, shopping complex, toilets, and telephone booths, Wi-Fi.

 Equipped with night landing facilities for 24-hr operations Instrument Landing System (ILS) has been installed with Distance Measuring Equipment (DME). To facilitate aircraft navigation, two Doppler VORs, one at the airport site and the other at Munnar, have been installed.
The 3400 meter long asphaltic concrete runway of Cochin Airport is capable of handling any type of aircraft including the most modern A380

 The international terminal has a duty-free shopping area, a transit lounge, VIP rooms, executive lounge, escalators and aerobridges. The CIAL golf club and country club 18 hole, 130 acre course. A separate Isolated Parking Bay (IPB) for aircraft under threat - as per the international standards. An exclusive visitors' gallery in domestic terminal

The airport handles approximately 800 aircraft per week, with 10,800 passengers each day.

 Passenger facilitation is of international standard with common check-in-counter, baggage reconciliation and boarding control systems- all computerised and automated. Fuel Hydrant system as in Singapore and Hongkong airports (the third airport in the country after Mumbai and Delhi)

A comprehensive plan to develop an airport township with all facilities to enable the company to earn substantial non-aeronautical revenue is underway.

Financial status
One of the most profitable airport in the country. Gross Income- 211.63 cr

Profit After Tax- 77.51 cr

Revenue:  55% of revenues is generated from operational aeronautical sources  45% from non-aeronautical sources, out of which 33% is directly from Duty free sale The airport is currently, the only major airport in India without charging User Development Fee (UDF) from the travellers since 2006.

Future plans
CIAL to prepare project report for Kannur Airport Construction of canopies in front of international arrival and departure areas. CIAL Aerotropolis an airport city Creation of a SEZ for aircraft-allied industries Aviation maintenance center Expansion of its Aviation training center