CIAL-Aerotropolis

A study on generating non-aero revenue

TABLE OF CONTENTS

1) LIST OF FIGURES 2) LIST OF TABLES 3) ABSTRACT 4) INTRODUCTION 5) OBJECTIVE OF STUDY 6) SIGNIFICANCE OF THE STUDY 7) INDUSTRY PROFILE 8) ORGNAIZATION PROFILE 9) LITERATURE REVIEW 10) MARKETING STRATEGIES GENERATED 11) RECOMMENDATIONS 12) SCOPE FOR FURTHER STUDY 13) CONCLUSION 14) REFERENCES AND BIBLIOGRAPHY

2 3 4 5 8 9 10 18 26 35 46 50 51 52

LIST OF FIGURES

1)INTERNATIONAL TERMINAL,CIAL 2) DOMESTIC TERMINAL,CIAL 3) AIR INDIA PLANES 4) LOGO OF AIRPORT AUTHORITY OF INDIA(AAI) 5) HONG KONG INTERNATIONAL AIRPORT 6) CIAL LOGO 7) COCHIN INTERNATIONAL AIRPORT(AERIAL VIEW) 8) CIASL LOGO 9) COCHIN DUTY FREE,CIAL 10) CARGO TERMINAL 11) MRO CIASL 12) CIAL ACADEMY LOGO 13) CIAL GOLF COURSE 14) TRADE FAIR CENTRE

6 7 10 11 13 18 20 21 35 36 39 40 41 45

LIST OF TABLES
13) PHASES OF MRO 39

ABSTRACT

There are 449 airports in India, out of which 125 are operated by government owned Airport Authority of India (AAI). Cochin International Airport is an international airport serving the city of Kochi. It is the busiest and largest airport in the state of Kerala. Cochin International Airport Ltd(CIAL) is the first airport in India developed under a public-private partnership (PPP) model. CIAL is a greenfield airport with 1300 acres of land ,and around 800 acres of Land used for airport and related facilities. The 500 acres of unutilized is intended for an Aerotropolis or an Airport City. The aerotropolis was proposed by its founder, V J Kurien, to ensure additional revenue sources for the growth of the company and to increase airport traffic through tourism and allied activities.

The Study made here is to determine marketing strategies to tap into the huge potential that lies in creation of Non Aero revenue for the Cochin International Airport Ltd, through an Airport city and regarding infrastructural activities. The main advantage of CIAL is having such large amounts of land for growth in close proximity to a city like Cochin. Creation of a tourist destination and business avenue at the same time through an Airport city could bring huge revenues for CIAL and development to the City. Thus this study is intended at determining all the current project that are completed, and under-construction to determine how far CIAL has moved on towards development of an Airport City, at the same time this study is about determining new projects and ideas that can be implemented in CIAL Aerotropolis and feasibility of such products in generating non-aero revenue.

INTRODUCTION

Cochin International Airport is an international airport serving the city of Kochi. The airport is located in Nedumbassery, about 30 km northeast of Kochi, in the state of Kerala, India. It is the busiest and largest airport in the state of Kerala. Cochin International Airport is the first airport in India developed under a public-private partnership (PPP) model. The airport pioneered the concept of private investment in the airport sector after being incorporated as a public limited company, receiving investments from nearly 10,000 non-resident Indians (NRIs) from 30 countries. The idea to float an Airport under Public Private Partnership has been mooted by then District Collector of Ernakulum Mr. VJ Kurian, IAS, today stands as a path breaker in this field in our country. Cochin International Airport situated in 1250 acres of land, in Nedumbassery, a calm and tiny village near Aluva today boasts of having an Airport with International standards and the fourth largest in India in terms of its International Passenger volume. As far as Infrastructure facility is concerned, it is in the seventh largest position among other Airports in India.

International Terminal of CIAL is sprawling in 4.78 lakhs Sq Feet area with a Passenger Handling Capacity of 1200 incoming and 1200 outgoing passengers per hour. The International Terminal at Cochin International Airport welcomes you to a pleasant travel / transit experience, on arrival or departure. It houses FOREX counters, Meet & Greet Hall, Pre paid Taxi Counters, Guest Rooms, Restaurant, Medical Assistance, Banks, Food Courts, Snack Bar counters, Prayer Rooms, Launches, Tourist Assistance, and Shopping Arcade etc.

Fig1. International Terminal, CIAL

The Domestic Terminal with 100000 Sq Ft area and passenger Handling capacity of 400 incoming and 400 outgoing passengers per hour. The Domestic Terminal Complex has exclusive arrival and departure areas spread over a floor area of 10,000 sq.m., with a peak hour passenger handling capacity of 400 incoming and 400 outgoing. It is fully integrated with all modern passenger amenities to cater to the domestic travellers to/from Cochin. With traditional Kerala style architecture and design, the airport ambience is warm and welcome, and at the same time, truly world-class. All domestic flights are handled through this complex. A large shopping complex consisting of 21 shops are situated at this terminal. There are two conveyor belts in the arrival hall.It has Airline Offices, Meet and Greet Hall, Prayer hall, restaurant, Shopping Arcade and a spacious air-conditioned departure lounge etc.

Fig 2. Domestic Terminal, CIAL.

One of the future projects for the airport is the CIAL Aerotropolis, or Airport City, with a total area of 500 acres.The aerotropolis was proposed by its founder, V J Kurien, to ensure additional revenue as non-aero revenue for the growth of the company and to increase airport traffic through tourism and allied activities. The proposed Aerotropolis will be located in Nedumbassery and nearby villages, aiming to convert into a self-sustainable town, with the airport forming the core element along with a residential zone. Work on the aerotropolis commenced in 2007.

The master plan envisages the creation of a Special Economic Zone (SEZ) for aircraft-allied industries, especially spare parts and OEM manufacturing units, an airline research and development center, workshops, and service zones. In addition to this an Information Technology Park, with dedicated airline support technology, design and development centers is also proposed. An integrated logistics centre and central container freight station are planned at the cargo village, Golf Course, Five Star hotels , Convention centres etc can attract customers.

OBJECTIVES OF THE STUDY

Airport marketing is a niche from this perspective. The traditional airport concept offers core trading products, namely transfer of passengers and goods. Today, airports have become commercial enterprises with value propositions, specifically designed to target specific market segments. The two main strategic business units managed by an airport enterprise are known as the aviation-related which include Landing fees, ATC fee, Passenger and cargo landing fee, Housing and handling fee and non-aviation related business which may be Rents from additional spaces to airlines, general sales agents, catering firms, forwarders, cargo operators, tour operators, travel agents, rents and commissions from various commercial ventures like boutique, duty free shops, bars, parking sites etc.

The main objective of the study include:

To determine sources of generating non-aero revenue. To find alternate sources of income for CIAL. To determine the current developments towards creating an Airport city. To find out ways to utilize the land available effectively. To find new and innovative marketing strategies and infrastructural developments that can be implemented in CIAL aerotropolis. To check the feasibility of the strategies that may be implemented in the Airport city. To see customers as potential buyers. To see customers as potential tourists. To determine the relation between Airport city and generating Aero Revenue.

These are some of the basic objective adopted in the study regarding generating non aero revenues for the CIAL Airport.

SIGNIFICANCE OF THE STUDY

The study is intended at finding out how the Cochin International Airport limited(CIAL) can use its in unsed land in building Indias first aerotropolis or airport city. It intends to maximise its non-aero revenue by building an airport city.

CIAL under the leadership of V J Kurian has already adopted many steps towards the airport city. Many of the strategies are implemented and some are underway. Many projects are identified in this regards.

The main intention of this study is to identify and recognize the current strategies and determine new strategies that are suitable for the Cochin Airport city. Therein lies its significance.

The study also recommends Ideas and suggestions that are really out of the box and if feasible will bring more sources of revenue for the Cochin International Airport Limited.

INDUSTRY PROFILE
Air India was set up by J.R.D. Tata, who ran it successfully until it was nationalized in1953. In the 1960s Air India, as the national flag-carrier was affectionately known,was flying to 32 destinations and making profits. For many years in India air travel was perceived to be an elitist activity. This view arose due to the prohibitive cost of air travel, the only people who could afford it were the rich and powerful. In recent years, however, this image of Civil Aviation has undergone a change and aviation is now viewed in a different light - as an essential link not only for international travel and trade but also for providing connectivity to different parts of the country. Aviation is, by its very nature, a critical partof the infrastructure of the country and has important ramifications for the developmentof tourism and trade, the opening up of inaccessible areas of the country and for providing stimulus to business activity and economic growth. Until less than a decade ago, all aspects of aviation were firmly controlled by the Government.

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Fig 3. Air India planes.

In the early fifties, all airlines operating in the country were merged into either Indian Airlines or Air India and, by virtue of the Air Corporations Act, 1953 this monopoly was perpetuated for the next forty years. The Directorate General of Civil Aviation controlled every aspect of flying including granting flying licenses, pilots, certifying aircrafts for flight and issuing all rules and procedures governing Indian airports and airspace. Finally,the Airports Authority of India was entrusted with the responsibility of managing all national and international airports and administering every aspect of air transport operation through the Air traffic Control. With the opening up of the Indian economy in the early Nineties, aviation saw some important changes. Most importantly, the Air Corporation Act was repealed to end the monopoly of the public sector and private airlines were reintroduced. Domestic liberalization took off in 1986, with the launch of scheduled services by new start-up carriers from 1992. A number of foreign investors took an interest. In1996-1998, Tata and SIA tried to launch a domestic carrier, but the civil aviation minister had publicly stated his opposition on numerous occasions.

Fig 4.Logo of Airports Authority of India(AAI)

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The Indian government introduced the open sky policy for domestic players in 1991 and partial open sky policy for international players only in November 2004. Increasing liberalization and deregulation has led to an increase in the number of players. Theindustry comprises three types of players full cost carriers, low cost carriers (LCC) and many start-up airlines that are making planning an entry.

The present Indian scenario is a phase of rapid growth in the industry due to huge build-up of capacity in the LCC space, with capacity growing at approximately 45% annually. This has induced a phase of intense price competition with the incumbent full service carriers (Jet, Indian, AirSahara) discounting up to 60-70% for certain routes to match the new entrants ticket prices. This, coupled with costs pressures (a key cost element, ATF price, went up approximately 35% in recent months, while staff costs are also rising on the back ofshortage of trained personnel), is exerting bottom-line pressure. The growth in supply is overshadowed by the extremely strong demand growth, led primarily by the conversion of train bus passengers to air travel, as well as by the fact that low fares have allowed passengers to fly more frequently. There has, therefore, been an increase in both the width and depth of consumption. However, the regulatory environment, infrastructure and tax policy have not kept pace with the industrys growth. Enactment of the open sky policy between India and SAARC countries, increase in bilateral entitlements with the EU and the US, and aggressive promotion of India as anattractive tourism spot helped India attract 3.2 million tourists in 2004-05. This market is growing at 15% per annum and India is expected to attract 6 million tourists by 2010. Also, increasing per capita income has led to an increase in disposable incomes, leading to greater spend on leisure and holidays and business travel has risen sharply withincreasing MNC presence. Smaller cities are also well connected now. Passenger traffichas increased and over 21 million seats have been sold, resulting in a growth of over50%. The Indian travel market is expected to triple to $51 billion by 2011 from $16.3billion in 2005-06.

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Aerotropolis: Concept
Major airports have become key nodes in global production and enterprise systems offering them speed, agility, and connectivity. They are also powerful engines of local economic development, attracting aviation-linked businesses of all types to their environments. These include, among others, time-sensitive manufacturing and distribution facilities; hotel, entertainment, retail, convention, trade and exhibition complexes; and office buildings that house air-travel intensive executives and professionals.

Fig 5.Hong Kong International Airport.

As more and more aviation-oriented businesses are being drawn to airport cities and along transportation corridors radiating from them, a new urban form is emergingthe Aerotropolisstretching up to 20 miles outward from some airports. Analogous in shape to the traditional metropolis made up of a central city and its rings of commuter-heavy suburbs,

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the Aerotropolis consists of an airport city and outlying corridors and clusters of aviationlinked businesses and associated residential development. A spatially compressed model of the Aerotropolis showing its current and likely future evolution is illustrated below. No Aerotropolis will look exactly like this but most will eventually take on similar features, led by newer "greenfield" airports less constrained by decades of prior surrounding development. The Aerotropolis is thus much more of a dynamic, forward-looking model than a static, cross-sectional model reflecting historic airport-area development to date.

Airports have been attracting commercial development for a long time . This attraction led to grow air passenger and cargo traffic and as cities have continued to expand outward towards, and sometimes around, airports. Airport area growth is being shaped by

Firms providing air transportation services

Firms which are frequent consumers of air transportation

Businesses which cater to the ancillary needs of air travellers and employees of the previous two types of firms

Companies which may simply be searching for accommodating sites with good regional highway access.

These various types of business activities create a ratcheting effect, accelerating airport area growth in a largely organic manner. Now however, a new land use and business model is emerging providing structure to and distilling value from the earlier organic development experience at and surrounding many airports. The business case underlying the airport city model recognises that: (1) Passengers, service-sector businesses, and shippers have unmet needs

(2) These passengers needs can be systematically addressed serving 21st century air travellers, businesses and shippers. The new model is almost universally used in the

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planning for as these three primary airport area growth drivers continue to increase in size and economic importance.

(3) Airport operators and their enterprise partners can benefit financially by addressing those needs. The airport city model is therefore increasingly being incorporated into airports commercial and land-use plans to generate additional nonaeronautical revenues. The spatial and functional core of the airport city is the passenger terminal, offering a variety of specialised goods and services. Urban functions to the airport city and then the greater aerotropolis, such as offices, hotels and exhibition complexes evolve near the terminal, analogous to a metropolitan central business district, surrounding the central square, creating a city-like environment at and immediately around the airport. As aviation-linked businesses cluster further outward, primarily along connecting transportation corridors, a more expansive aerotropolis takes shape.

Airports offer connectivity to suppliers, customers, and enterprise partners worldwide. Some of the businesses around airports are even more dependent on distant suppliers or customers than on those located nearby. The aerotropolis encompasses a range of commercial facilities supporting both aviation-linked businesses and the millions of air travellers who pass through the airport annually.

Aerotropolis is a goldmine of opportunities. If in possession of large amount of land which holds true for a Greenfield airport which usually is sited in a sparsely populated area with large tract of waste lands. The following are some of the opportunities:

Commercial development and land use:

Industrial uses o Import and export o Manufacturing

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o Warehousing o Research and development o Cargo facilities o Bulk storage o Outside storage

Commercial uses o Restaurants o Commercial office spaces o Hotels and motels o Recreational centers o Training facilities o Small business centers o Retail sales o Industrial businesses o Car rental agencies o Automobile dealers o Golf courses o Movie theaters o Recreational and training facilities

Airports may have opportunities to generate and sell energy and utility services to tenants, nearby businesses or communities or regional utilities at a net profit. For example: An airport could purchase utilities wholesale from the local utility company and sell the utilities to tenants at the retail utility rates they would have paid the utility company.

An airport steam plant could be sized to produce a cost effective steam district to nearby hotels or other large institutions.

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Electricity from solar or wind sources could be generated on airport property to offset airport electricity or costs, or be sold to the local electric utility and tenants. As restrictions on emissions increase, local utilities may be willing to subsidize airport investment in alternative energy equipment on airport property.

Parking revenues are the most significant sources of non-aero revenues at airport.

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ORGANISATION PROFILE

Cochin International Airport is an international airport serving the city of Kochi. The airport is located in Nedumbassery, about 30 km northeast of Kochi, in the state of Kerala, India. It is the busiest and largest airport in the state of Kerala. For the financial year 2011-12, it was the fourth busiest airport in India in terms of international passenger traffic ferrying 2,586,658 passengers and seventh busiest in terms of overall passenger traffic carrying 4,717,650 passengers. The airport is the primary base for Air India Express operations and is a focus city for Air India, GoAir, IndiGo, Jet Airways, JetLite and SpiceJet. Cochin International Airport is the first airport in India developed under a public-private partnership (PPP) model. The airport pioneered the concept of private investment in the airport sector after being incorporated as a public limited company, receiving investments from nearly 10,000 non-resident Indians (NRIs) from 30 countries. The airport handled 4.7 million passengers and had air traffic movements (ATM) of about 411 per week for the year 201112. The airport handles approximately 800 aircraft per week, with approximately 13,000 passengers each day. 8 domestic airlines and 16 international airlines connect Kochi with nearly 40 destinations nationally and internationally.

Fig 6. CIAL logo.

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History
The original air facilities in Kochi were an aerodome and airstrip on Willingdon Island, built in 1936 by the British Residency of Kochi Kingdom, intended for transporting British officials involved in the development of Cochin Port. The airstrip was converted into a military airport by the Royal Indian Navy during World War II. The military facility hosted naval fighter planes and was intended to thwart possible Japanese air raids. After Indian Independence, the Indian Navy operated the airport, though it permitted civilian aircraft to use the facility. The Gulf economic boom of the 1980s made it necessary to develop international transportation to Kochi in the interests of expatriates working in the Middle East. In October 1990, the Kerala Chamber of Commerce, supported by local industry, passed a resolution to expand the Naval airport to accommodate large jets and facilitate direct flights to the Middle East. The resolution was rejected by the Navy for security reasons. A new airport was built near Kochi in 1991 instead.

Construction
The original proposal for the airport outlined an estimated cost of 100 crore and an expected date of commission in 1997, approval was granted in May 1993. The funding was envisaged to be from interest-free loans from non-resident Indians working abroad, donations from industrial undertakings, exporters, cooperative societies and loans from the state government. A body called the Cochin International Airport Society, under the chairmanship of the Chief Minister of Kerala, was registered in July 1993 to execute the project. For the purposes of better fund mobilisation, as well as administrative convenience, a public limited company under the name Cochin International Airport Ltd. (CIAL) was registered in March 1994 with an authorised capital of 90 crores. A total of 4,000 acres acres of land was acquired for the construction of the airport. Approximately 2,300 land owners and 872 families were resettled under a rehabilitation package. Major electric lines and an irrigation canal had to be diverted for the construction.

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The facility was formally inaugurated by the President of India on May 25, 1999, and the first commercial service began on June 10, 1999. The operations from the old naval airport were moved to CIAL on July 1, 1999.

Fig 7. Cochin International Airport.(aerial view)

Expansion
Phase 1 and 2 The airport had 250,000 sq ft of floor space at its inauguration. CIAL envisioned six phases of expansion over a period of 20 years, the third phase of which was completed in 2009. Most of the expansion has occurred in the international terminal, as it accounts for more than 78% of all traffic. In 2002 the original airport's floor area had risen to 300,000 sq ft due to the expansion of the international departures block.

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With a rising number of airlines operating at the airport, CIAL decided to construct an exclusive terminal for international arrivals, which increased the floor space to 420,000 sq ft , increasing passport controls and baggage carousels in addition to expanding the international departures floor space. As part of phase two of the expansion plans, an airline center complex of 58,000 sq ft was constructed on the western side of the terminal 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

Work on the third phase was intended to accommodate 5 million passenger movements annually and was started in 2007. The third phase involved the commissioning of a central block, connecting the domestic and international terminals, and enlarging the airside area to accommodate more gates and waiting areas along with increased shopping areas. This 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. The runway was re-surfaced in 2008. The parking areas were increased from 12 to 18, including 2 dedicated for cargo airlines. The third phase also completed the expansion of the cargo village and a second aircraft taxi-way to the MRO facility.

Fig 8. CIASL logo.

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Phase 4

The fourth phase of expansion was originally planned to upgrade the domestic terminal, which has remained untouched in the past 3 phases.However, the expansion plans were changed after the new UDF Government took over the administration of the state in May 2011. As per the announced plans, the current international terminal is to be converted completely into a domestic terminal, while a new state-of-the-art international terminal is to be built. As per the new plans announced by the Board of Directors in September 2011, the new international terminal would come up on the eastern side of the existing structure. The built up space of the new terminal would be 1,000,000 sq ft having segregated departures and arrivals at different levels. The terminal will have 16 aero-bridges and an additional 30 parking bays. The new terminal would have a capacity to handle 4000 passengers at any given point of time. The arrivals will have 10 baggage carousels and increased immigration facilities. The new terminal is expected to be commissioned by the last quarter of 2014. With completion of the fourth phase, the total built up area of the airport would increase to 1,600,000 sq ft making it the third largest airport in the country, in terms of size. The current domestic terminal would be converted into Royal Pavilion and would handle VIP and private chartered flights and jets. The current international terminal, once converted into a domestic terminal, will have 5 aero-bridges and 6 boarding gates facility, apart from increased parking bays.

Management

Cochin airport is the first in India to be built in a publicprivate partnership and is owned by a public limited company called Cochin International Airport Limited, better known as CIAL, floated by the government of Kerala in 1994. The Government of Kerala holds 33.36% stake, making it single largest investor in the project.

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Indian Government Companies like Air India, BPCL, AAI holds 8.74% stake Foreign companies like Abu Dhabi based Emke Group, the Oman based Galfar Group, UAE based Majeed Bukatara Trading holds 5.42% stake. Various Indian companies hold 8.57% stake Scheduled commercial banks like Federal Bank, SBT and Canara Bank holds 5.91%. Remaining 38.03% stake is held by more than 10,000 personal investors from 29 countries, mostly non-resident Indians.

The company has decided to go for public offering and giving 10 million shares to HUDCO as part of debt settlement, which would lead HUDCO having 3.37% stake in the company and reduction of stake of other holders. The Chief Minister of Kerala (Oommen Chandy at present) is the ex-officio chairman of CIAL. V J Kurian is the Managing Director of the company, appointed on 10th June 2011. CIAL is one of the most profitable airports in the country. In last financial year 2010-2011, CIAL reported a profit after tax of 90.10 crore with a gross income of 245.59 crore with a sharp increase of 40% from previous year.

Terminals

Cochin International Airport has three terminals, where one terminal is for Domestic Passengers and another for International Passengers and there is a cargo terminal. The domestic terminal has an area of 13,500 m2 and is designed to handle up to 400 passengers at peak times. The departure hall has 42 Common Use Terminal Equipment (CUTE) enabled check-in counters, including 9 premium check-in counters , 6 self-check in counters. It also has 12 security gates and a common waiting area that can accommodate 600 passengers at a time. A family lounge and a premium lounge for business class passengers are also present. A children's play area and small food court are housed in the waiting area. Twelve gates facility are available for domestic passengers. The arrivals hall has 4 baggage carousels.

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The international terminal covers an area of 63,900 m2 . Both the departure and arrival halls of the international terminal are designed to accommodate 1800 people each at any given time. The departure hall is equipped with 84 CUTE enabled check-in counters, including 18 premium check-in counters. The airport is the fifth airport in India to install advanced in-line baggage screening systems, replacing conventional x-ray based manual screening. It also has 36 passport control counters, 18 security gates and 12 customs counters. There are four premium lounges for first class and business class passengers. There are 30 gates and 18 jetways. The arrival hall has 30 passport control counters and 8 baggage carousels. On 8 September 2012, the director board of CIAL approved the design of the new international terminal which will cost 600 crore . The terminal will have two levels. It will be able to handle 10 million passengers annually and 4000 passengers during peak hours. It will have 15 aerobridges. The terminal is expected to manage passenger traffic till 2030. After the construction of the new international terminal, it is planned to convert the existing international terminal to a domestic terminal and reserve the current domestic terminal for business jets. Cargo Cochin Airport has a dedicated cargo center located on the eastern side of the airport complex. The cargo center is one of the largest facilities in the country with a total floor space of 120,000 sq ft in 50 acres of land. The cargo terminal handled around 40,000 MT last year, with more than 25% growth. There are three complexes in the cargo village: The Center for Dry Cargo (CDC), with an area of 50,000 sq ft , has a dedicated warehousing facility and air-customs inspection facility for both import and export. The Center for Perishable Cargo (CPC) is the largest dedicated cold storage center for perishable goods in the country, has a floor area of about 22,000 sq ft and can handle approximately 25,000 metric tonnes of cargo. It was commissioned in 2008 at a cost of 38 crore jointly by CIAL, Government of India through Agricultural and Food Promotion Export Development Authority (APEDA) and Government of Kerala. The Trans-shipment Cargo Complex is a dedicated warehouse allocated for trans-shipment cargo. The import and export cargo from the customs warehouses in the catchment area, as

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well as from airports like Chennai, Bangalore, Coimbatore etc., are handled and stored at this centre for export. In addition, an exclusive domestic cargo complex has also been constructed for private domestic logistics firms and India Post services.

Infrastructure Air traffic control The air traffic control (ATC) tower is 45 m (148 ft) tall. Cochin ATC controls flights below an altitude of 15,000 ft (4,600 m). The airport has instrument landing system (ILS) using distance measuring equipment (DME). The ATC uses Doppler VHF omni range I and II. Airport Surveillance Radar The airport has signed an agreement with AAI to install an advanced airport surveillance radar (ASR) as well as Mono-pulse Secondary Surveillance Radar (MSSR). In addition, a Surface Movement Radar is to be installed for effective monitoring of flights in the runway and parking bays. The new radar system will reduce the holding time of the aircraft before landing from the present level of 12 minutes to 3 minutes. This means that four aircraft can land within 12 minutes whereas it takes about 40 minutes for this currently. The radar will also allow more accurate alignment tracking for landing of the aircraft. The radars will be installed near the runway. The radar at Cochin airport will be networked with the systems at the Chennai, Mangalore and Thiruvananthapuram airports. The radar, expected to cost about 25 lakhs will be imported from France. Runway With a length of 3,900 m and width of 45 m , the runway is equipped to operate any type of aircraft in commercial service. It has a full length parallel taxiway of 3,900 m. The runway is spread over the panchayat areas of Nedumbasserry, Sreemoolanagaram and Kanjoor. Cochin Airport has one helipad for dedicated use of helicopters, meant for air-taxi purposes. Plans for constructing a heliport are underway.

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LITERATURE REVIEW
At the largest international airports passenger terminals are morphing into luxury shopping malls and artistic and recreational venues, as well as locations to exchange knowledge and conduct business. No longer restricted to magazine shops, food courts and duty free, they now contain gallerias and shopping streets featuring brand name boutiques, speciality retail and upscale restaurants, along with live music, arts, entertainment and cultural attractions. International brands are being complemented by locally-themed merchandise and dining outlets. Concierge-staffed business lounges and trade facilities are sprouting up in the terminals, as well as concourse-connected four and five-star hotels. This 15,000sqft full-service business center supports up to 300 users with wireless hotspots, workstations, printers and meeting facilities along with large-screen TVs and advanced video conferencing systems.

In addition to incorporating an expanding variety of shopping, leisure and business support venues into passenger terminals, airports are continuing to develop their publicaccess property with hospitality, entertainment, and recreation clusters; office and retail complexes; conference and exhibition centres; and facilities for processing time-sensitive goods. The private sector has joined in, developing similar facilities just beyond the airport fence. The largest concentration of hotel rooms on the US West Coast surrounds Los Angeles International Airport (LAX). London Heathrows new Sofitel Hotel, with direct access to Terminal 5, measures up in design and guest amenities to any downtown London five-star facility. In addition to overnight transit passengers, it attracts wealthy international and extended-stay business travellers, and has rates as high as 3,000 per night.

An airport city should focus more on

1.

Airports need to create new non-aeronautical revenue sources, both to compete and to better serve their traditional aviation functions. The commercial sectors pursuit of affordable, accessible land.

2.

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3.

Increased passenger and cargo traffic generated by gateway airports.

4.

Airports serving as a catalyst and magnet for landside business development.

The most common airside and landside airport city commercial facilities include: Restaurants, catering and other food services, some locally-themed

International brand and specialty retail shops

Banks and currency Exchanges

Duty free shops

Airline lounges

Private meeting rooms

Hotels and accommodation

Convention and exhibition centres

Aviation-related industries

Logistics and distribution,

Core aeronautical activities are part of the technical operation of the airport, directly supporting the air traffic function.

Airport-related activities have a direct relation to airfreight or airpassenger movements (logistics and distribution activities or terminal retail and hotels). Their competitiveness and/or business revenues are closely tied to the scale of air traffic.

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Airport-oriented activities choose the airport area because of the image of the airport and its accessibility. The price of land and surface connectivity, rather than relation to air traffic, are the key factors in determining those activities locating in the airport area. Along with air traffic patterns, surface connectivity, land price and the nature of the local market (industrial structure and nearby resident population commercial demands) play a role in the type of airport-area development and activities taking place. So do airport boundaries. Those airports with limited developable land will see substantial airport-related and airport-oriented commercial development taking place outside the fence and therefore may not benefit directly from the real estate returns. They will, however, benefit from any additional passengers and cargo that such development generates. The boundaries of numerous airports were established many decades ago, well before they assumed significant commercial and competitive development roles. Yet, just as urban development did not stop at the political boundaries of metropolitan area central cities, so airport-dependent development will not stop at the formal boundaries of airports. Outside the airport fence, value-capture is emerging as a key issue in airport city development. Since airport areas are attracting businesses, workers and residents at a heightened pace (research by the University of North Carolinas Kenan Institute has shown that employment growth near airports has been growing considerably faster than the metropolitan suburban area that the airport is located in), airport area commercial The Way Managing new commercial development

Consistent with their growing non-aeronautical functions, airports are altering their operational units and management structure. Numerous airports (both public and privatesector operated) have established commercial and/or real estate divisions to develop their landside areas as well as foster development beyond airport boundaries. They include among others, Aroports de Paris (ADP), DFW, Fraport, Amsterdam Schiphol, Singapore Changi and Spains Ferrovial Group. ADP established a real estate division in 2003 to act as the developer, general contractor and construction project owner and manager of landside commercial properties at Paris Charles de Gaulle and Orly airports. China Capital Airport Holdings (CAH), a state-owned enterprise that operates much like a private entity, is rapidly proceeding with its ambitious Beijing Airport City. Working with partners such as Airport City Development Corporation Ltd, (ACL) and municipalities such

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as Shunyi, it is developing shopping, entertainment, education, exhibition, sports and leisure, logistics, light manufacturing, finance, trade and housing at and around Beijing Capital International Airport. Its Airport City Logistics Park, being led by ACL, covers over 2.5 million square metres. DFWs management is aggressively expanding its commercial and real estate divisions to lease airport land to a wide variety of commercial tenants. It is also forming publicprivate partnerships to develop over 2,000 hectares of property for office, hospitality, retail and entertainment.

Hong Kong has likewise established both commercial and real estate divisions to boost its terminal retail and develop its adjacent SkyCity commercial complex. Malaysia Airports Holdings Berhad (MAHB) is developing Kuala Lumpur International Airports (KLIA) airport city, commercially anchored by its large Gateway Park, which in addition to retail and office development, includes motor sports, an automotive hypermarket and leisure venues drawing on local and aviation-induced markets. Incheon International Airport Corporation (IIAC) is forming a variety of joint ventures with the private sector to develop its AirCity, encompassing hotels, office buildings, logistics zones, shopping, entertainment and tourism districts, as well as housing and services for airport city workers and residents. Dubai Aviation City Corporation (DACC) has been established to build and manage Dubai World Central (DWC), a $33 billion airport-centred set of cities under development 25 miles south of downtown Dubai. Anchored by the new Al Maktoum International Airport, scheduled to open in mid- 2010, DWC will include logistics office towers, aviation-related industry, hotels, a megamall, golf course, and housing for 40,000 on-site workers. Through its Schiphol Real Estate subsidiary, Amsterdam Airport Schiphol operates on the basis of private-sector principles and has been a key revenue generating arm for its operator, the Schiphol Group. Approximately 70% of the Schiphol Groups profits come from aviation-linked commercial activities. The Airports Authority of India (AAI) has turned to private-sector conglomerates such as GMR and the GVK Group to lead consortia to operate and expand Delhi and Mumbai airports as well as construct and manage the new Hyderabad and Bengaluru international airports. Since shifting these airports into private-sector leadership, both passenger-service quality and airport revenues have improved dramatically. Further extending their corporate reach, some airports are even buying and/or operating other airports through special

29

investment management divisions. ADPI, Incheon International Airport Corporation, Schiphol Real Estate, MAHB, Fraport, Ferrovial and Vancouver Airport Services (YVRAS) are among those pursuing crossborder airport ventures. Private-sector groups such as Macquarie Airports (now MAp) also own interests in and often manage multiple airports around the world that rely heavily on the airport city model. These new operational structures and cross-border ventures are testimony that airports are evolving from basic aeronautical infrastructures into multi-functional extended enterprises, serving bothaeronautical needs and profitable commercial development. To many not familiar with the new realities of airports, this enterprise model might appear to be a deviation from the norm, but it is fast becoming the 21st century way forward for large and medium-sized airports. The airport city management model is thus quite distinct from the more traditional civilengineering and aeronautical systems airport management model typically guided by government employees who run airports like public utilities using publicsector principles. The equally important commercial development role requires different strategies and operational skills driven by privatesector principles, fusing innovative management, finance and marketing with logistics and real estate knowledge. The airport city model requires airports to do business the way businesses do business. They must be far more nimble in their investment and operating decisions than is the case with most public enterprises, which frequently need political approval for even minor decisions. The move to a corporate organisational form of airport city management promises to reduce the role of politics, lessen bureaucracy and increase operational efficiency. Moreover, corporate organisation is much more in line with airport city objectives: earning a positive financial return with an obligation to maintain capital which is generally audited annually. A paradigm shift is also required in airport master planning. These plans must be as focused on commercial layout and efficiencies as on aeronautical layout and efficiencies. Ideally, the commercial and aeronautical components would be synergised for optimal reinforcement. This is much more likely to occur when a larger holding company is responsible for both the aeronautical and independent, but related, airport city development. Airports from Amsterdam to Zurich and from Beijing to Seoul have embraced the airport city management model to develop their terminals and landside areas as a pivotal means to financing airport operations while contributing to their profitability, cost-

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competitiveness in attracting airlines and passenger satisfaction. Other international airports, not quite to the same scale have given commercial development a high priority such as Athens, Tancredo Neves, Brisbane, Calgary, Dublin, Stockholm-Arlanda, Taiwan- Taoyuan and Vancouver. They all have implemented the airport city concept in their business models, explicitly or implicitly, and are incorporating a range of traditionally urban economic functions to diversify their land-use and revenue streams. The upshot is that airports are undergoing a significant transformation, taking on commercial functions previously reserved for private enterprise and spatial forms previously reserved for cities. Many larger airports also have the density of highway and rail connections that are usually associated with metropolitan downtowns. This is reinforcing their new roles as drivers of business location and urban development over an extended area. The emerging aerotropolis With the immediate airport area serving as a region-wide multimodal transportation and commercial nexus, strings and clusters of airport-oriented hotels, convention, trade and exhibition facilities, office parks, information and communications technology complexes, recreation and entertainment venues, time-sensitive goods handling and mixed-use residential/commercial developments are forming along airport corridors up to 30km outward. Much airport area development is being underpinned by improving ground transportation. Highways have been widened and brought closer to the terminals. Trains have arrived in the form of metro, light rail and suburban lines, including airport express rail service to city centres. Going further, airports in Amsterdam, Frankfurt and Paris are directly connected to the European high-speed rail networks, with platforms below air terminals. This improved regional and national surface connectivity not only reinforces development along airport corridors but is also spurring development in interstitial areas between access corridors. Serving as models of planned postmodern urban megadevelopment, the largest of these airport edge cities have become globally significant destinations in their own right. For example, the city of Las Colinas (Texas) just east of DFW, is home to the global headquarters of four Fortune 500 companies including ExxonMobil and 2,000 other residential, shopping, hotel and recreational complexes. Amsterdam Zuidas, located six minutes from Schiphols terminal, houses the world headquarters of ABN Amro and ING banks, along with numerous European

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corporate headquarters. It has more than 150,000sqm of Class A office, retail, and hospitality real estate. Nearly 9,000 multi-family residences are in the works. New Songdo International Business District, located near Incheon International Airport, is being developed by New York Citybased Gale International and South Koreas POSCO E&C as a 600-hectare, global business and trade centre. The size of downtown Boston, this $35 billion mixed-use project, is currently the largest private sector development in the world. Much of this Instant City is already built with the final phase scheduled for completion in 2015. Using New Songdo as a model of planned aviation-linked urban mega development, Gale International, in partnership with Cisco Systems, is considering similar scale airport edge cities in China, India and South East Asia. These are being designed to be among the most electronically networked and environmentally sustainable cities. In addition to its highly-efficient Hong Kong island and Kowloon expressway and air express train connection, SkyCity is being linked by the express train to its nearby Disney theme park that opened in 2006, about 10 minutes from the airport. The airport express train connects within five minutes to Tung Chung, a massive new town housing 45,000 airport workers and their families, complete with schools, churches, shopping and medical facilities. SkyCity is also seamlessly connected through high-speed turbo jet ferries to the economically booming Pearl River Delta in southern coastal China. These high-speed ferries shuttle passengers, shoppers, workers and tourists back and forth between SkyCity and key delta locations in 3045 minutes. Such connectivity to the mainland exists for efficient movement of air cargo, as well. HKIA logistics ferries link the airport to the deltas major manufacturing centres, shuttling parts and finished goods back and forth between the airport and the mainland. The Way Forward Aerotropolis advantages Driving the aerotropolis are advantages they provide to business in the new speeddriven, globally networked economy. The aerotropolis is proving to be a particularly attractive location for the business services sector. drawing regional corporate headquarters, conference centres, trade representative offices and information-intensive firms that require executives and professional staff to undertake frequent long-distance travel. Business travellers benefit considerably from quick access to hub airports, which offer a greater choice of flights, destinations and flexibility in rescheduling; they also help travellers avoid the costs of overnight stays.

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Chicagos OHare International Airport area has become the second-largest office market in the US Midwest, while the Dulles region, centred around Washington DCs Dulles International Airport in the northern Virginia suburbs, contains more Class-A office space than downtown Washington DC. Firms specialising in information and communication technology and other high-tech industries consider air accessibility to be especially crucial. High-tech and other knowledge-based professionals travel by air much more frequently than do most other workers, giving rise to the term nerd birds in the United States for commercial aircraft connecting technology capitals such as Austin, Boston,Raleigh-Durham and San Jos. Many high-tech firms are locating along major airport corridors, such as along the Washington, DCDulles Airport access corridor and Chicago OHares I-94 corridor. The aerotropolis is proving equally advantageous to many goods processing sectors. Todays most competitive manufacturers use advanced information technology and high-speed transportation to provide fast and flexible responses to customers unique needs. These firms build agile production systems that quickly connect them to their suppliers and customers around the globe, allowing them to source parts and ship assembled goods in a time-definite manner (on-time, just-in-time, every time). A manufacturers ability to meet customer demand also depends on the existence of a comprehensive ground-to-air shipping network of air cargo carriers, trucking companies, freight forwarders and logistics providers. This network has been strengthened as demand for time-sensitive manufacturing and distribution grows. Made possible primarily by proximity to an airport, a ground-to-air shipping network allows manufacturers to minimise their inventories, shorten production-cycle times and quickly access novel inputs for customised products that create additional value. The economic impact can be huge. Memphis International Airport (world headquarters ofFedEx) has helped create over 160,000 jobs in its metropolitan area. More than 12,000 people work at the companys airports facility each night. One in four jobs in the Memphis region is tied to the airport which had an annual economic impact of $29 billion in 2007. FedExs growing European regional hub employs 2,500 people at Charles de Gaulle is likewise beginning to have a major economic impact by attracting a range of time-critical goods-handling businesses to the Roissy area. Fuelling further aerotropolis development, restaurants, superstores, factory outlets, and consumer services of all types are locating along airport corridors to serve a dual customer base of air

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travellers and residents. Athens International Airport (AIA), for instance, has a large IKEA and a Kotsovolos megastore, as well as a major factory outlet complex in an airport retail park located less than three kilometres from its main terminal. The vast majority of their shoppers are locals. Upscale retail is also gravitating to airport areas. Led by airport edge city Tysons Corner, the Dulles Airport region has the second largest concentration of retail in the United States, following New York Citys Manhattan Island. The Las Vegas Strip, a corridor extension of McCarran International Airport, generates as much revenue from shopping, hotels and entertainment venues as it does from gambling. As airport-integrated economic regions evolve some are even developing their own place identities such as the Amsterdam Airport Area, or Dulles the aerotropolis as a preferred business and commercial destination is fast emerging.

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MARKETING STRATEGIES GENERATED

SHOPPING @ COCHIN DUTY FREE Cochin Duty Free Shop is the most convenient Duty Free Shop in India for travelers looking for duty free products. Continuing with our commitment to bring the best products at the best prices, Cochin Duty Free showcases an exclusive line of branded merchandise for our traveling customers from perfume to confectionery, to super market, to liquor, to special Kerala souvenirs and more.We also tag our prices to best comparative lowest regional prices we can offer.

o World Class Duty Free Shopping Facilities o The World's best brands now take off from here. o CIAL partnered M/s. Alpha to manage duty free operations o Heavenly shopping experience at down to earth prices.( Lowest prices in the region) o Two beautiful shops with cool ambience and cheerful customer friendly services. o 13,900 square foot Arrival shop - no longer you need to carry the burden of heavy luggage, but can shop for everything on arrival o 5000 square foot Departure shop- with unique traditional collections of Kerala, which will offer an exciting experience for international travellers.

Fig 9.Cochin Duty Free,CIAL.

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CIAL Air Cargo

Competing in today's global economy presents a huge challenge to many supply chain business partners. The air cargo industry demands the right mix of options and solutions in order to satisfy the needs of all segments of the business. As nations first green field Airport, Cargo Service Centre at Cochin International Airport Limited provides the industry with multitude of choices.

The facility has more than 100,000 Sq. Ft. of office and warehouse area space dedicated for the cargo operations and as capacity continues to expand substantial investments has consolidated and streamlined cargo movement at the airport.

To offer superior cargo centre services to airlines, forwarding agents, shippers and consignees, we stick to the concept of fine tuning our procedures to meet the ever-changing demands and challenges of the constantly evolving air cargo industry. CIAL is the best cargo airport of Kerala, in South India. The regions, one of the biggest and busiest air cargo airports, can easily accommodate longhaul direct and non-stop International/Domestic traffic. Located at Nedumbassery, Cochin (COK), the airport is just 20 KMs from Sea Port, 15 KMs from Cochin Economic Zone and 10 KMs from the Industrial and Commercial capital of Kerala, The Tirupur Coimbatore cargo hub which is key cargo market for South India is only 225 KMs from this Airport.

Fig 10.Cargo Terminal.

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Key Facts of CIAL Cargo Centre

The total area earmarked for the Cargo village is 50 acres. Separate areas are dedicated for the storage and handling of Domestic and international Cargo including the Trans-shipment cargo. The entire International air cargo centre is designated as a Customs Bonded area. It is equipped with modern automated and computer-controlled cargo terminals. More than 15 scheduled and non-scheduled carriers with over 80 aircrafts movements daily reach hundreds of cities worldwide. Accommodates all aircraft loading: both narrow- and wide-body upper deck and narrow-body belly. One lakh square feet of warehouse and storage facilities, including climate-controlled areas and areas for inspection, assembly, etc. Separate centre for handling the Perishable cargo More than100 cargo companies are based here. The long-haul and short-haul trucking companies use CIAL cargo facilities.

CIAL, pioneer in the PPP model green field Airport and leading cargo service provider in India is the sole operator of the Cargo Service Centre.

Acceptance of cargo in ready for carriage condition Physical storage handling including build-up and break-down of ULDs. Dedicated handling of freighter operation. Special storage handling for precious hazardous and perishable cargo. Ware House Management. Custodian under customs act. Access Control. Security functions for all Carriers. Dedicated business development unit

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Future Developments

With completion of Cargo village, there shall be separate centre for Marine Products, Couriers and Express cargo, Valuable and Vulnerable cargo.

The inauguration of exclusive freighter bay and the introduction of the EDI MES at the centre will be immediate attractions

The logistic centre, along with Multi Modular operation of SEA to AIR and AIR to SEA trans-shipment shall commence with the inauguration of Vallarpadam International Container Terminal at Cochin Port.

Maintenance Repair and Overhauling(MRO)

Cochin International Aviation Services Limited (CIASL) is setting up a state-of-theart Aircraft Maintenance Repair and Overhaul (MRO) facility in an area of about 35 acres at Cochin International Airport. The infrastructure works consisting of two narrow body aircraft hangars, work shops with an area of approximately 70,000 sq.ft. in two floors, Aircraft parking bays of approximately 3,50,000 sq.ft. etc have already been completed. CIASL MRO facility is designed to facilitate high quality Aircraft maintenance and repair services in the Country at competitive prices and low turn around time.

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Fig 11 MRO ,CIASL

The CIASL MRO project has been planned out in two phases:

Phase - I Line Maintenance Two narrow body Aircraft Hangars (B737/ A320) Workshops Training Academy

Phase II Two Wide Body Aircraft Hangars Additional Narrow Body Aircraft Hangars Additional Workshops FBO

Table 1.Phases of MRO.

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Aviation Training Academy

CIAL Academy is the academic & training division of Cochin International Aviation Services Limited (CIASL). It was launched in July 1999 in collaboration with Indira Gandhi National Open University (IGNOU). It has been established to create top-notch aviation professionals by imparting hands on experience and training in the aviation sector. The programs are designed for current and future requirements of the aviation industry.

Fig 12. CIAL Academy Logo.

The Objectives of CIAL Academy are:

To encourage and impart knowledge in the field of aviation management and aviation technology To develop and evolve as a Centre of Excellence for various career oriented learning streams To promote professional and industry oriented education through industry institution collaborative model The academy has core faculty members, well experienced in their respective fields. Guest lecturers visiting from various establishments interact with the students to share their on-job experiences.

There is a full-fledged state of the art library with ample books, which keeps students informed about the latest trends in the aviation industry.

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Vision To develop and emerge as a Centre of Excellence for aviation industry and offer career oriented learning experience to aspirants in the country. Mission To generate world class aviation professionals on par with International standards and make the country self reliant in aviation related employment.

It runs a wide range of academic programmes:

Master of Business Administration with specialization in Aviation Business Management Advanced Diploma in Airport Operations Management Air Cargo Management Certificate Programmes in Airport Ramp Handling Rescue and Fire Fighting Security and Intelligence

CIAL Golf Course

The CIAL Golf & Country Club (CGCC) is located at Cochin, the queen of the Arabian Sea and in the heart of Gods Own Country.Cochin International Airport Limited (CIAL) owns and operates this course.CGCC is designed to play to a length of over 7400 yards and is the only 18 hole course now in Kerala, with Bermuda Tifdwarf on the greens and Bermuda 419 on the tees and fairways.CGCC is an eco friendly all weather Championship course that is comparable to the best in the country, affordable and accessible to the public.The adapted design philosophy and the construction of the course reflects the focus on risk and reward, use of all indegenous material and knowhow; at the same time absorbing and adopting the latest technologies in the industry.

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\ Fig 13.CIAL Golf Course

Five large lakes covering sixty seven thousand square meters adorn the landscape providing exciting challenges to golfers and a treat to the environmentalists.The water bodies filled in by storm water during the monsoon season not only supports the elaborate irrigation system but also acts as an important source to recharge and maintain the water table in adjoining areas benefitting the surrounding communities.The vast body of water has also thrown up options for aqua culture and water sports.The horticulture plan of the course has emphasized on the use of plants and species endemic to the region but forgotten by the younger generations.

The course has many unique features.The first 18 Hole course in Kerala, centrally located to all the major nodal points in the fast spreading future metropolis, air, road & rail connectivity including the proposed metro rail.It is the first course in the country to offer an island green on the 18th Hole for a very exciting and challenging round of golf.

The work on the first nine holes, club house, swimming pool, practice green and lawns for Croquet and Bowls have been completed.The work on the

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second nine holes, driving range, golf academy, guest rooms, health club, pool and billiard room, tennis courts and basket ball court is expected to be completed by the end of 2012.

Preferred Destination

A mere 30 minute drive from Cochin and with proximity to the emerging city centre of Kakkanad, the Golf Course is set to change the way people spend their leisure hours and at the same time engage in all types of sports, business networking and social interaction.With the proximity to the airport and the emergence of Golf Tourism, the Golf Course will be an international tourist destination attracting golfers from all around the globe.

Heli taxi

Cochin International Airport Ltd. (CIAL) launched a helicopter taxi service, with Bangalore-based Bharath Airways Private Limited (BAPL) coordinating operations. A Bell 407 chopper will be used initially, and depending upon the response additional choppers will be added to the fleet. The helo-taxi service is part of CIALs recently established Tourism Division. It is commenced in association with more than 30 tour operators. Tourists arriving to Kochi will now have more options to explore Kerala.

Industrial Park

The plans by Cochin International Airport Limited (CIAL) to set up in its campus a dedicated industrial park for aerospace related industries and aircraft-related units for manufacture and repair of components at Kochi airport.

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The park will have about 100 hectares and will have the flexibility to offer plots of half an acre or in multiples, depending upon the requirement of the particular entrepreneur or industry . There could be small to medium-scale units and large units, repairing and overhauling large aircraft, engines as well as their equipments for both military and civilian purposes.

IT Park The proposal is to construct over 4 million square feet of IT space within the Aerotropolis under construction at the Kochi Airport's land. The Cochin International Airport Ltd. (CIAL), operating the country's first joint sector airport at Nedumbaserry, near here, has decided to diversify into the information technology sector with the setting up of a Rs 600 crore IT Park on surplus land available with it.

CIAL Tradefair center

An exhibition centre might not sound like a lot, but what makes this one so truly exciting is the 100-floor office tower that comes along with it. Poised to be one of the tallest towers in South Asia, the International trade and exhibition centre whose construction is expected to begin in early 2010, is expected to be complete in 3 years.

The first phase of the project will comprise the exhibition and trade centre and the food court. This is expected to be completed by 2010. The second includes a 5-star hotel and shopping mall, and the third will consist of the 100 storey office tower.

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Fig. 14. Trade Fair Centre

KEY HIGHLIGHTS

Mumbai-based Zoom Developers will be the promoters of the global trade centre. Located at the Kinfra Hi-tech Park at Kalamasserry. Singapore-based CPG Consultants India has been entrusted by Zoom to provide full design consultancy services The project is coming up on BOT basis: 90 years lease which is renewable for another 90 years. Total area of 40 acres marked for the project The exhibition hall and the convention centre are expected to have a total built-up area of 5.6 million sq. ft. Apart from the 100-storey tower, the project will also include a 5-star hotel of 31 floors providing 400 rooms and a shopping mall spread on six floors. The trade centre will be housed in another five storey building. Other amenities include a club house, service apartments, restaurants, ATM centres, a post office and Internet caf. Multilevel car parking to be provided in two buildings of 12 and 8 storeys respectively.

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RECOMMENDATIONS

The Aerotropolis project should also include a SEZ, a captive power plant, a health city, road and rail terminals, an international school, and a residential area. There should be a airport village with a local flavor complete with shops and a 2,500 sq m, post-terminal airport retail village. There should be an aviation park outside the airport area as well as a hardware park close to the airport. A first of its kind elevated expressway should be planned to help passengers reach from the city centre or places like the NH-47 and NH-17 Junction Edapally along with an expanded 6 lane NH road which takes passenger to the new airport from the city within minutes. The Aerotropolis should be conceptualized and made available in a phased manner. The 6 lane NH Road will go from the AEROTROPOLIS through ATHANI,MANJALI up to NH 17. From there it will continue as a expressway that goes up to the Cochin NH 47 Byepass , it can also be extended to the proposed Pachalam Roundabout which will have the following connections 1) An arm towards Marine Drive 2) An arm towards Kaloor 3) An arm towards NH 17 4) An arm towards Gosree Bridges 5) A connection between Chittoor Road and Mathai Manjooran Road. In view of the coming up International Container Transshipment Terminal at Vallarpadam this roundabout is strategically important.Two National highways NH 47 and NH 17 join the Bye Pass Jn at Edappally.The Byepass connects Edappaly with Aroor which is an industrial town of Cochin, south of Aroor is the emerging satellite township of Cherthala and Alleppey the Venice of the East. Bye-Pass Junction in Edappally is the north end of the Cochin Byepass which extends up to Aroor via Vytilla Jn. This entire route is evolving into a major business hub with bigtime shopping malls and five star hotels. Another is a expressway going east from the Aerotropolis via Kalady, to Anamudi the highest point in South India connecting spiritual and tourist destinations Dam, like Thattekad Kalady, Bird

Malayatoor,Athirpally,

Bhoothathankettu

Sanctuary,Munnar and Thekkady on the way to Anamudi in the High Ranges. It would serve a similar purpose to the Airport Seaport Road which connect

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various industrial regions. The Aerotropolis Anamudi expressway would be boost for Kerala Tourism. Also the Aerotropolis should have a MMTS.

A technology center, which will house research campuses for global corporates, should be in the plan ,in it there should also be some office spaces, service apartments, and healthcare and supporting retail spaces. The technology centre should be located at the entry to the airport on the main access road. There should also be a separate business unit will house prime office space, two hotels (three- and four-star) and again more retail spaces. The AEROTROPOLIS should also have a downtown area which ideally should be the closest to the terminal building making it interesting to the airport user. The Downtown area should be positioned as a typical urban entertainment centre with retail formats and food courts, leisure and entertainment spaces, multiplexes, health and wellness facilities, a five-star hotel and some office space This part will should also have an airport visitor center. Even though CIAL already has hotels in its vicinity CIAL should select the TAJ GROUP and the OBEROI GROUP to operate first class international hotels. The hotels should be within walking distance from the terminal building and should comprise of 321 keys, large conference facilities and a world class spa. CIALs AEROTROPOLIS should have these essential components

An extensive study should be conducted by a leading independent property consultant taking into account both macroeconomic as well as microeconomic factors. There should be a targeted usage mix as well as the targeted development timelines for the Airport City. The following components should be conceptualized based on the urban as well as test planning for the Airport City

1. DOWNTOWN AREA

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This area should be the closest to the terminal building and will be positioned as a typical urban entertainment center . It will house a shopping area with various retail formats, entertainment facilities, offices and hospitality facilities.

A Downtown area can address the time of passengers, meters and greeters who arrive early to the airport. Additionally, due to the Downtown Area being closely linked to the Business Unit Area will help attract additional footfalls from the offices. An Airport Visitor Centre should be planned opposite the Downtown area. Here, visitors will have the opportunity to observe the airport operations and combine this experience with travel, entertainment and business or simply as an independent visit.

The Downtown area should be developed in a phased manner through a tender process by one developer. It will have its own metro station once the Cochin metro network is connected to the Airport. The Downtown should also be the new home of the Ernakulam District Court which is currently occupying the old collectorate building in Ernakulam.Having the court located in the Aerotrolises will generate more non aeronautical revenue.

2. BUSINESS UNIT

This area should lie between the Downtown area on the eastern side and the Middle area on the western side. It should house a business park for premium office space and will consist of support retail, a 3 star and a 4 star hotel.

The connection to the area should be through the central access road on its north side and through the southern main road on its south side.

The Business Unit area should be developed in a phased manor through a tender process by one developer.

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3. TECHNOLOGY CENTRE

This area should be located at the entry of the Airport on the main access road. The Technol ogy Centre can be a hub for global corporates who will have the option to establish research campuses for highly qualified personnel. The Technology Centre area can also house healthcare, support retail and hospitality services.CIAL should execute land lease agreements with the corporates who will then design their facility with the preferred developers according to their needs

4. MIDDLE AREA

This area should exactly between the Business Unit and the Technology Center. This area of approximately 15 acres of land should be used as a park area with recreation facilities for the visitors as well as the employees. It can be reserved for a possible taxiway connection between the two runways in future

The airport city should have more hotels complimenting one another, along with destination retail, serviced apartments, office park, software campuses and a lot of free public spaces, which will make it a truly global enclave. To supplement its already existing cargo operations CIAL should build and operate two state-of-the-art general cargo warehouses for both domestic and international cargo with an initial capacity to handle 300,000 mt of cargo per year, collectively. This ambitious goal will not happen overnight, and it will not happen without the continued commitment and engagement of the regions public and private sector leaders. The project is too big for any one community to tackle alone the development should be spread over multiple parcels and multiple jurisdictions and be a partnership between local communities,universities,private and non profit partners.

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SCOPE FOR FURTHER STUDY

The study was intended on understanding Cochin International Airport Limited and determining of the marketing strategies that bring non-aero revenues to it through an aerotropolis or airport city.

The study was limited to existing articles extracted from the internet and many articles and magazines. It lacks authenticity since it is not made out of real experiences and market study. The strategies although adoptable the feasibility has not been tested. Thus scope for future study on this study is huge, since the real on field study and extracting report would add authenticity to the report .Also seeking and suggesting Ideas to the authorities can help us determine the feasibility. It is highly recommended to have a further study based on this report and determine the feasibility at the same time identifying more strategies.

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CONCLUSION

Cochin International Airport Limited (CIAL) is the 4th largest airport in India ,with regards to international passenger traffic. It is ideally located in Nedumbassery in Ernakulam district over 1300 acres of land. It is ideally located between the 3 districts of Ernakulam,Thrissur and Kottayam and may be easily able to serve the districts of Alapuzha and Palakkad. The CIAL is all set to create the first Airport City in the nation, with related works that started from the late 2007. The potential for the Airport City in Cochin is huge. Many Huge projects have been already done with to substantiate this claim, like the MRO,Trade fair centre,golf course etc This study was intended at recognising the current strategies by CIAL towards the airport city and also at generating new marketing strategies towards the Aerotropolis. The study has done justice in identifying many strategies but many have left been left unturned to the many limitations. The study may lack a feasibility report but the study is purely based strategies that surely will earn non aero revenue for CIAL.

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REFERNCES AND BIBLIOGRAPHY

1. ^ http://www.aai.aero/traffic_news/mar2k12annex3.pdf 2. ^
a b

http://www.aai.aero/traffic_news/mar2k12annex2.pdf

3. ^ http://www.aai.aero/traffic_news/mar2k12annex4.pdf 4. ^ "Ernakulam, Kerala, India to Cochin International Airport - Google Maps". Maps.google.com. 1970-0101. Retrieved 2012-02-10. 5. ^ AAI traffic figures as on April 2012 6. ^ "Kochi airport is the first aviation venture owned by the public". rediff.com. 1999-12-06.Archived from the original on 2010-12-14. Retrieved 2007-11-11. 7. ^ the Royal Navy chose it as a strategic site not only for their headquarters in Southern India, but also as an air station cum landing craft and sea plane base.http://mod.nic.in/samachar/dec1502/html/ch13.htm 8. ^ The origin of INS Venduruthy can be traced to August 31, 1939, when a small naval contingent was positioned in Kochi under Royal Indian Navy Captain L. Wadeson, who assumed the duties of Naval Officer-in-Charge, Cochin.http://www.hindu.com/2010/07/02/stories/2010070250590200.htm 9. ^ A small naval unit set up just two days prior to the outbreak of World War II.http://www.hindu.com/2006/06/24/stories/2006062421530300.htm 10. ^ The Official Website of Cochin International Airport 11. ^ "CIAL A NOVEL VENTURE IN INDIAN CIVIL AVIATION". Government of India, Press Information Bureau. Retrieved 2011-01-12. 12. ^ "GOVERNANCE ISSUES IN AIRPORT DEVELOPMENT: LEARNINGS FROM COCHIN INTERNATIONAL AIRPORT LTD". IIM Ahmedabad. Retrieved 2011-01-12. 13. ^ "A Brief History". CIAL. Retrieved 2011-01-12. 14. ^ "Exclusive terminal for International arrivals". 2010-12-14. 15. ^ Travel & Tourism Newsletter, hotels, airlines, destination January 2007 "Phase 3 expansion". 201012-14. 16. ^ "New international departure terminal to be opened soon". The Hindu (Chennai, India). 22 October 2008. Archived from the original on 2010-12-14. 17. ^ "Flights to Kochi airport to be rescheduled". The Hindu (Chennai, India). 18 March 2008.Archived from the original on 2010-12-14. 18. ^ "Rs.100 crore for airport expansion". The Hindu (Chennai, India). 30 January 2009.Archived from the original on 2010-12-14. 19. ^ "Airports Economic Regulatory Authority (AERA) - Airport Details". AERA. Retrieved 2012-02-10. 20. ^ "CM: New international terminal for Kochi airport - southindia - Kochi - ibnlive". Ibnlive.in.com. Retrieved 2012-02-10.

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21. ^ "New international terminal at CIAL to be ready in three years". The Hindu (Chennai, India). 25 September 2011. 22. ^ "Finance Accounts 200809, Govt of Kerala". Comptroller and Auditor General of India. Retrieved 2011-01-14. 23. ^
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Cochin airport to go for initial public offering | Deccan Chronicle

24. ^ "Investor Info". CIAL. Retrieved 2011-01-14. 25. ^ "Welcome to Cochin International Airport...The travel friendly airport!". CIAL Ltd.. Retrieved 6 July 2011. 26. ^ "Financial Report". CIAL. Retrieved 2011-01-14. 27. ^ New baggage screening at Cochin airport eases hassles "Baggage systems at Cohin airport". 201012-14. 28. ^ Cochin Airport Installs Baggage Screening System | AVIATION WEEK 29. ^ "Airport at Kannur to take wings". The Times Of India. 17 September 2011. 30. ^
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Cargo facilities at Cochin Airport

31. ^ Cochin Airport to have largest perishable cargo center in India 32. ^ "The Official Website of Cochin International Airport". Cial.aero. Retrieved 2012-02-10. 33. ^ "Airports Authority of India". Aai.aero. 2012-01-30. Retrieved 2012-02-10. 34. ^
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"New radar for Kochi airport in 6 months". The Times Of India. 3 September 2011.

35. ^ "CIAL to install radar at airport". The Hindu (Chennai, India). 29 September 2011. 36. ^ "The Official Website of Cochin International Airport". Cial.aero. Retrieved 2012-02-10. 37. ^ "Kochi Airport (COK) Details - India". World-airport-codes.com. Retrieved 2012-02-10. 38. ^ "Kochi (COK) - Airport details". Theairdb.com. Retrieved 2012-02-10. 39. ^ Heli taxi service launched at Kochi airport | CIAL | | Indian Express "Helipad at Kochi airport". 201012-14.

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