To address financial challenges and secure the future growth of Kannur International Airport, the management is diligently considering strategic partnerships.
The airport intends to transfer its operations to the Tata Group, which has exhibited significant interest in assuming control.
Additionally, following the recent acquisition of Thiruvananthapuram Airport, the Adani Group have also expressed interest in managing the airport.
The management of Kannur International Airport in Kerala is currently looking at the possibility of transferring its operations due to financial challenges.
In an endeavour to privatise, the airport intends to transfer its operations to the Tata Group, which has exhibited significant interest in assuming control.
Additionally, following the recent acquisition of Thiruvananthapuram Airport in the state, the Adani Group has also expressed interest in managing the Kannur airport, according to reports.
At present, only a limited number of international flights are allowed to operate from Kannur. Moreover, the domestic airlines operating at the airport have increased their ticket prices, leading to a decline in passenger traffic.
Amidst financial crisis, the employees of the airport have experienced a two-month delay in receiving their salaries.
Currently, only Air India Express and IndiGo are providing services at the airport.
Furthermore, the initial loan taken for the airport, which was built at a cost of Rs 2,350 crore, was Rs 892 crore, which has now escalated to Rs 1,100 crore, including accumulated interest.
Adding to the financial strain, the loan repayment period has already expired, posing additional challenges for the airport’s financial stability.
To address these financial challenges and secure the future growth of Kannur International Airport, the management is diligently considering these strategic partnerships.
The prospect of transferring management responsibilities to Tata Group offers a chance to harness their expertise and aviation sector resources.
Furthermore, the Adani Group, known for their proficiency in managing airports and infrastructure projects, emerges as a robust contender for the management transfer.
Their involvement could play a significant role in revitalising the Kannur airport and enhancing its operational efficiency.
With the potential transfer of management to either group, the airport envisions a promising path towards financial recovery and aims to establish the airport as a flourishing hub for air travel, benefiting the local community and passengers.