Malaysian government’s Malaysia Airports Holdings Berhad along with the Kerala government may pick up stake in KGS Arunmula International Airport Limited, as stated by BS. It is developed by Anil Ambani backed KGS Group.

The KGS group MD, Gigi George said the dilution of stake to Malaysia Airport could be upto 15% with them already being the technical and strategic partner for the project.

Last month Air Kerala was planning to raise R200 Cr as initial capital which would start operations with five leased aircraft flying to the Middle East, mainly catering to Keralites living in the Gulf region.

The airport is Kerala’s fifth and the first private international Greenfield airport at Arunmula, Pathanamthitta District, Kerala at a cost of R2000 Cr on a land covering 700 acres.

Its debt/equity is split equally and the phase one of the project is expected to cost around R750 Cr.

Thiruvananthapuram, Kozhikode and Kochi are the other international airports with one being developed under public private partnership (PPP) in Kannur.

Kerala has a large number of NRIs whose remittances account for 31% of the state’s GDP and the travelers growth in the region has moved up from 2 Mn eight years back to around 10 Mn a year now.

The Aranmula airport is strategically located close to multiple tourism destinations such as Kumarakom, Alappuzha, Kumily, Thekkady tiger reserve, and the pilgrimage centre of Sabarimala Ayyappa temple in Pathanamthitta district.

HPCL was planning buy 11% stake in Kannur International Airport, a SPV formed with Kerala government for R55 Cr earlier this year.

Malaysia Airports Holdings Berhad (MAHB) manages and operates 39 airports in Malaysia. It also cooperates extensively with India's GMR and holds an 11% stake in Hyderabad International Airport and another 10% stake through Malaysia Airports (Mauritius) Pvt. Ltd. in Delhi International Airport Ltd. (DIAL), which is modernising New Delhi’s Indira Gandhi International Airport.

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