The severe impact of the lockdown faced by the firm during the period of 2020-21 was reflected in the performance of the firm. Where revenue has taken a dip by almost three times from FY20 to register INR 44.77 crore. Also, the net loss for FY21 was INR 185 crore from the previous year’s net loss of INR 95 crore.

Passenger and Aircraft Traffic figures

Note-Go Airlines (India) Limited has filed for insolvency proceedings. It currently serves 12 million passengers per annum. CIAL & all other airports can witness initial dip but eventually substitute carrier absorbing those commuters by different airlines.

Market Outlook

Over the next decade, India will grow to have the largest population in the world, its economy will expand the fastest among the G20 nations, and a burgeoning middle class will spend more on air travel. As a result, passenger traffic in India will grow fast and is looking at exponential growth in every facet of the aerospace and aviation ecosystem. India is already the third biggest domestic aviation market in the world and is progressing on the path to take a spot of third biggest aviation market overall. With the demand reaching new horizon & scheme like UDAN (Central Govt) added new routes in domestic market which simultaneously created a buzz in airline industry to add more fleets in their arsenal that will subsequently increase the growth. Apart from that direct international flights from major Gulf cities are playing a crucial role in reshaping of the KIAL.

Currently, Airport Authority India (AAI) leased out eight of its airports under Public Private Partnership (PPP) namely Delhi, Mumbai, Lucknow, Ahmedabad, Mangalore, Jaipur, Guwahati, Cochin & looking forward to lease out twenty-five more as per the report published by Ministry of Civil Aviation over the period of three years between 2022 to 2025.

The Airports Authority of India (AAI) and other airport developers have taken up the development of new and existing airports with a projected capital expenditure of approximately INR 98,000 crore in the next five years. The Union Budget 2023-24 allocated an amount of INR 1,244.07 crore for Regional Connectivity Scheme (UDAN). The National Civil Aviation Policy in another initiative aimed at promoting growth in the aviation sector by providing incentives for the development of airport infrastructure, reducing taxes, and simplifying regulations. With up to 100 percent FDI permitted in Greenfield and existing airport projects and for MRO (maintenance and repair organisations) under the automatic route, India is attracting investors to the sector.

Future Growth

• Over the next decade, India will grow to have the largest population in the world, its economy will expand the fastest among the G20 nations, and a burgeoning middle class will spend more on air travel. As a result, passenger traffic in India will grow fast and is looking at exponential growth in every facet of the aerospace and aviation ecosystem. India is already the third biggest domestic aviation market in the world and is progressing on the path to take a spot of third biggest aviation market overall.
• Till now only Domestic airlines are allowed to operate from the airport. It is expected that central govt. will be permitting point of call status to Foreign Airlines as well.
• Kerala state accounted for 18.48% of the total International Traffic in the country and as the international traffic in the country grows, Kannur will directly benefit.
• Phase-I expansion of the Airport is to be started and once fully completed, the airport will undergo expansion to its runway (expanded by 4000 mts) as well as the Terminal Building. This will further increase the capacity of the Airport.
• In February 2022, the Day Hotel (Hospitality) has also commenced operations at the International Airport Building. This will further help in increasing the revenue of KIAL.
• Schemes like UDAN run by Central Govt will further help with new routes in domestic market. This will in turn help with the growth.

Risks

• Kozhikode International airport is around 120 kms from Kannur International Airport which is giving it tough competition.
• Any stagnancy resulting in a global recession will impact negatively the growth of aviation industry.

Joint Venture

BPCL-KIAL Fuel Farm Pvt Limited is only a joint venture company with BPCL. Kannur Airport holds 26% equity whereas BPCL holds 74% equity.

Key Personnel

Shri. Pinarayi Vijayan– Chairman (Current Chief Minister of Kerala)

Mr. C Dinesh Kumar- Managing Director

Mr. S JayaKrishnan- CFO

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