MUMBAI, AUGUST 29, 2005
GEORGE SMITH ALEXANDER &
CUCKOO PAUL
TNN
Cochin International Airport (CIAL), the country’s
only public-private initiative in the aviation sector,
is said to be in look out for a strategic partner.
CIAL, which started operations in 1999, runs the
first airport to be built through a public-private
partnership in the country. Four NRI directors hold
36% in the company and two of them, Sharjah-based
NV George, who holds 18 crore shares and the Muscat-based
P Mohammed Ali, who holds 9 crore shares, are the
major shareholders.
According to sources, merchant bankers have already
met the NRI shareholders based in the Middle East.
However, the deal will take some time to fructify,
as these shareholders are looking at a significant
premium of around Rs 150 per share.
The Hindujas and the Anil Dhirubhai Ambani (ADA)
group are believed to have expressed interest in picking
up a stake in the airport company, sources said.
However, ADA group officials strongly denied any
such interest. Senior Hinduja group officials could
not be reached over the weekend.
Sources said that even the Bharti group could be
interested in the airport.
Bharti Enterprises is bidding for the Delhi airport
in collaboration with Singapore’s Changi Airport,
while there have been reports of Anil Ambani joining
hands with Mexico’s ASA. Incidentally, the Hindujas
are also looking at taking a stake in the budget airline,
SpiceJet.
Apart from the NRIs, the Kerala state government
holds 26% of the company, and the rest is held by
Air-India, Bharat Petroleum, State Bank of Travancore
and Federal Bank.
The airport, based at Nedumbassery near Kochi, is
the only new airport project that has managed to come
up in the past one decade. Sources also added that
the airport also has enough land available for development.
Around 1,500 acres of land was acquired for the airport,
which was built at a cost of Rs 315 crore.
The company has ambitious plans for the future and
has recently unveiled a Rs 3,500-crore expansion plan
covering an entire range of aviation activities. This
include an aircraft maintenance company, a free zone
logistics centre, a centre for perishable cargo, hotels,
a 4,000-seater convention centre, exhibition halls,
a shopping complex, gyms and a family entertainment
complex
CIAL registered a Rs 45-crore profit during ’04-05,
and revenue receipts increased from Rs 16 crore to
Rs 100 crore during the period. CIAL managing director
VJ Kurien said that the company has recorded a profit
of Rs 20 crore in the first quarter of current fiscal.
CIAL has appointed Ernst & Young to advice it
on land utilisation. “The report is likely to
be submitted soon,” Mr Kurien said.
CIAL’s passenger traffic has grown from 7.7
lakh in ’00-01, to 15.9 lakh in ’04-05.
The number of domestic passengers increased by 25%,
while international passengers grew by 17%. Currently,
12 airlines operate from the airport with six more
scheduled to launch. With an average of 176 flights
in a week, CIAL is the fourth largest in the country
in respect of international flights.
