KOCHI: As it enters the silver jubilee year, the Cochin International Airport Ltd (CIAL) has chalked out a comprehensive roadmap encompassing 163 meticulously planned projects across both aeronautical and non-aeronautical domains for its continued operational expansion and growth.
In what was an innovative model then, CIAL was started with an investment of a mere Rs 20,000 and by pooling funds through equity shares from public investors and the state government. Twenty-five years on, the Kochi airport – operated by CIAL – plays an important role in connecting Kerala to the world, handling over 62% of the state’s air passenger traffic.
The Kochi airport was dedicated to the nation on May 25 in 1999 by then President K R Narayanan. Former chief minister K Karunakaran was the chairman and V J Kurian was the managing director. The first flight was operated to Dammam (then Dhahran) on June 10.
In its inaugural year, CIAL managed 6,473 flights and served 4.96 lakh passengers. Since then, there has been steady growth, with the airport now handling 70,203 aircraft and accommodating 105.29 lakh passengers (FY 2023-24).
“Considering the anticipated exponential growth in the global aviation sector, India stands poised for remarkable advancements. The Indian aviation industry is forecasted to soar at an annual growth rate of 16%. At CIAL, our board has meticulously crafted a strategic development plan to align with this trajectory,” said CIAL managing director S Suhas.
Leveraging cutting-edge technology, the management ensures that the airport’s passengers receive an exceptional experience.
“This year, our focus is on introducing new international routes and expanding domestic services to offer cost-effective air travel options. With innovation as our compass, we are charting a new course for a seamless and sustainable aviation experience,” he said.
The Kochi airport is the only one in India to make a profit in the post-pandemic year with a remarkable total dividend of 317%, Suhas said.
“Despite a steep drop in passenger traffic and a loss of Rs 85 crore in 2020-21 due to Covid, CIAL made a profit of Rs 37 crore in FY 2021-22. During 2023-24, CIAL achieved its highest passenger volume, surpassing 10 million passengers for the first time in a calendar year, reaching 10.5 million passengers with a significant profit margin of Rs 350 crore,” he said.
After taking over as the managing director, Suhas introduced a slew of measures and strategies and restructured all functional verticals of the company. Subsequently, the organisation started demonstrating remarkable resilience. The management also implemented a series of innovative operational strategies and a comprehensive financial restructuring plan focused on strengthening connectivity and optimising overall performance.
As a result, the passenger numbers rebounded significantly, jumping from 2.47 million in 2020-21 to 4.76 million in 2021-22. The success continued in 2022-23, with a record-breaking operating profit of Rs 521.50 crore and a net profit of Rs 267 crore.
No competition for Kochi airport
Thanks to its geographical positioning, Kochi is an easily accessed airport to reach major tourist destinations and has the highest number of international-domestic connectivity in the state.
According to a CIAL official, who preferred to stay anonymous, there is no competition for the Kochi airport despite the Adani Group having taken over the Thiruvananthapuram airport in October 2021. Though the service and facilities have improved, Thiruvananthapuram remains one of the most expensive airports in the state in terms of airfare.
“As of now, we don’t face any competition. Kochi is geographically situated in the centre of the state and has the benefit of easy connectivity to major tourist spots. Also, we have direct connectivity to many regions compared to other airports in the state, both in the international and domestic sectors,” the official said.
He further said that CIAL has become proactive in the past few years. “Earlier, the practice was to facilitate the airlines that come to us. However, we are now working on our marketing activities, conducting route conferencing by meeting the airline officials and convincing them that we have more potential.
As a result, Kerala’s first direct flights to Vietnam on VietJet, premium Bangkok services with Thai Air, and budget-friendly Lion Air connections were launched. Looking ahead, CIAL is setting its sights on Europe, with plans for direct connections shortly. Now CIAL operates 25 airlines connecting international and domestic destinations,” he said.
While discussions and meetings are on with Lufthansa and British Airlines, the shortage of aircraft is a major issue, he pointed out.
The Kochi airport has started the expansion of its domestic routes, adding popular destinations like Kolkata, Chandigarh, Varanasi, Raipur, Ranchi and Lucknow. “Earlier, the ratio of domestic and international passengers was 45:55. Now, there is a reversal. Currently, domestic passengers constitute around 55% of the total passengers. This fiscal, we expect a growth of around 20% in the number of domestic passengers,” the CIAL official said.
A look back
Though the initial funding target for the project was Rs 200 crore, the total collection was just Rs 4 crore. Kurian, the then-managing director, came up with an innovative funding concept, which received a green signal from Karunakaran, the then-chief minister. Foreseeing the viability of the project, he approved the PPP model.
Though Kurian had a perfect plan to raise funds, it did not go as envisaged. Therefore, he proposed a new plan — financial restructuring by floating a company. A public limited company had to be formed, which would enable the project to pool funds through equity shares from public investors and also the state government. Thus, with an authorised initial capital of Rs 90 crore, comprising nine crore equity shares of Rs 10 each, the Kochi International Airport Society was incorporated.
The country’s first airport company in the public-private partnership space, CIAL has rewarded its single largest investor — the Kerala government — handsomely over the years. On an initial investment of Rs 95 crore, the state government, which owns a nearly 34% stake in the company that runs the Kochi airport, received Rs 291.54 crore in dividend payouts alone over the past two decades or so.
Metro expansion
The Phase III extension of Kochi Metro to Angamaly, connecting the Kochi airport, is being considered. A clearer picture is expected to emerge by the end of 2024. Meanwhile, sources said the location for the metro station near the airport in Nedumbassery has been identified.
“The land identified for the proposed metro station is in front of the international terminal area. CIAL will provide all the required help,” the official said.
Over the past few years, connectivity to the airport from the Aluva metro station has improved. Four metro feeder buses operate in a loop, and from Friday, a new CNG bus by Kleen Smart Bus Limited too began services.
Going green
The airport’s commitment to sustainability has been recognised by the United Nations through the prestigious ‘Champions of the Earth’ award. Being the world’s first airport to be fully run on solar energy, CIAL successfully commissioned two significant green energy projects as a further addition to its sustainable energy practices: a hydropower plant at Arippara, Kozhikode, and a solar power plant at Payyannur, Kannur.
The hydropower plant has a capacity of 4.5MW and the solar power plant in Payyannur produces 12MW. With the commissioning of the Payyannur plant, the cumulative installed capacity of the solar plants of CIAL has been scaled up to 50MWp.
These include seven plants functioning on the airport premises and a solar carport, apart from the one at Payyannur. CIAL’s solar power plants together generate 2 lakh units of power a day, whereas the airport’s daily power consumption stands at 1.6 hundred thousand units. Till April 2024, CIAL produced 35 crore units of power, effectively reducing the carbon footprint by 28,000 tonnes per year, equivalent to the oxygen production from the planting of 46 lakh trees, while also conserving 11.9 million litres of fossil fuel annually.
CIAL plans to invest further in renewable energy sources and explore sustainable practices throughout its operations. This includes signing an MoU with the Bharat Petroleum Corporation Limited to implement a green hydrogen plant and utilise excess land more efficiently.
International Terminal (T3) expansion
The work on the expansion of the international terminal (T3) is progressing. With the new apron sprawling over 15 lakh square feet on the northern flank, accompanied by a terminal expansion spanning 5 lakh square feet, the aircraft parking bays will be increased to 44 with eight aerobridges. Similarly, there are plans to expand the domestic terminal (T1). “Once the work on T3 is completed, we will expand the T1 area as well,” said an official. He also said that, as of now, CIAL has the space to cater to the demand of new airlines and manage the air traffic movement with the existing runway. “However, in future, land acquisition would be required to construct an additional runway,” he added.
Intternational Cargo Terminal
With the International Cargo Terminal, CIAL aims to elevate southern India as a dominant cargo hub. The Directorate General of Civil Aviation has revised the rule for freighter operations following a review of its earlier direction which limited ad hoc and non-scheduled cargo flights from foreign carriers to six cities. Though Kochi is excluded, the management hopes that it will also be included eventually. “We are now handling 70,000 tonnes of international per year cargo. Through this venture, we anticipate a substantial surge in Kochi’s cargo transit, fortifying its position as a pivotal global trade hub. Standing as the largest cargo terminal in the state, featuring automation and advanced scanners shall safeguard both efficiency and security ensuring seamless operations. The new cargo has a capacity of 2 lakh tonnes, significantly boosting the government’s intervention in promoting the state’s farm produce,” the official said.
‘0484’ Luxury Aero Lounge
The transit accommodation facility consists of 42 rooms, designed for the convenience of short-stay travellers and is expected to be inaugurated by September. This 50,000 sq ft lounge complex near Terminal 2 comprises a restaurant, conference halls, well-appointed boardrooms, gym and a spa.
7 mega projects
On October 2, 2023, CIAL unveiled seven mega projects.
International Terminal (T3) expansion
Import Cargo Terminal
Modernisation of Airport Emergency Services for enhanced safety
DigiYatra software developed in-house
Golf tourism
Perimeter Intrusion Detection System (PIDS)
India’s biggest luxury aero lounge ‘0484’
Kochi Airport Timeline
1936 -Kochi airport began operations as an airstrip on Willingdon Island
1990s-New airport project mooted
1992-Public Private Partnership model proposed
1993-Approval for airport construction received in May
1993-Cochin International Airport Society, formed by then CM K Karunakaran
1994-Foundation stone laid
1995-Project received environment and forest clearance
1996-E K Nayanar took over as chairman of the CIAL project
1997-Land acquisition completed, civil work of terminal began
May 25, 1999-Cochin International Airport Limited was initiated
June 10, 1999-First flight operated to Dammam (then Dhahran)
Record profit
CIAL caters to 62% of Kerala’s air passenger traffic
FY 2023-24: Handled 70,203 aircraft and accommodated 105.29 lakh passengers
April 2024: CIAL produced 35 crore units of power
Rs 37 crore - Kochi is the only airport in the country to record a profit in the post-pandemic year
