Advertising
opportunityKannur International
Airport Limited Kannur gives
Kerala new
wings
2
Agenda
1 Overview and Opportunity for
Advertising BusinessBidding Process 2
3 4 Technical and Financial
EvaluationEligibility Criteria
3
Kannur International Airport – the new gateway to Kerala
1. Kannur Airport, the fourth international airport in Kerala, was set up on a on
Public Private Partnership (PPP) Model on a 2,300 acre land parcel
2. The airport recently achieved a major milestone of handling over 1.5
Million passengers in 12 months, an unprecedent growth for a
greenfield airport, compared to other airports in Kerala
3. Initial passenger forecasts suggest that Kannur International Airport
(Kannur Airport) has the potential to realize a passenger throughput of 5
Million in 5 years and 10 Million in 10 years
4. The ratio of Passengers to Meeters & Greeters stands at 1:5* leading to
high eyeball hits for advertising
5. Currently, four airlines - Indigo, Go Air, Air India Express and Air India
operate from Kannur Airport:
4
1.7
5.1
2.0
Pax Traffic in Mn (Apr,19-Sept,19)
1
Kozhikode
Kannur
Trivandrum
Cochin2
3
4
0.8
3
2
1
Kannur
International
Airport Limited
Sr. No. Air Traffic Movements (ATMs) # of ATMs
1. Domestic 150
2. International 112
Total 262
*Estimates from preliminary primary interactions
4
A business opportunity driven by growing demand
Indian carriers
deploying additional
capacity in Kannur
Increase in bilateral
agreements
India’s double digit
aviation growth story
Assumptions supporting Kannur’s growth story
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
International 0.85 1.06 1.27 1.48 1.68 1.89 2.10 2.31 2.52 2.73 2.94
Domestic 1.09 1.44 1.79 2.14 2.49 2.84 3.19 3.54 3.89 4.24 4.59
Total 1.94 2.50 3.06 3.61 4.17 4.73 5.29 5.85 6.41 6.97 7.53
-
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
Passenger Forecast in Millions
International
Domestic
Total
These forecasts are constrained estimates. Port of Call status by 2021, could help Kannur Airport realize a passenger throughput of 10 million by 2030.
These estimates are indicative, the bidders have to do their own diligence to determine their business case.
Kannur airport is estimated to serve 7.5 million passengers by 2030
5
Supported by capacity augmentation by airlines
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
ATM Forecasts
Domestic International
15,947
20,456
24,483
28,745
32,947
37,195
41,406
45,82250,238
54,653
59,068
3,942
11,396
609
2020
Turboprop Narrowbody Widebody
8,318
45,507
5,243
2030
Turboprop Narrowbody Widebody
AIR
CR
AF
T W
ISE
AT
M S
PL
IT 2
020 v
s 2
03
0
*Constrained forecast
Kannur Airport is expected to have 162 flights per day by 2030*
6
Kannur International Airport embarked its journey with a set of aspirations…
A multi-modal center that will
reposition Kannur as the gateway
for passengers and ‘Emporium of
Spice trade’ for the Indian sub-
continent
Gateway Airport
to the Malabar
A catalyst for tourism growth that
enhances the tourism potential
of ‘Gods own country’
Tourism
enabler
A smart and codependent
ecosystem that promotes
economic activities across
sectors in close sync with the
growth of airport
An
Aerotropolis
Catalyst to unlock Malabar’s socio-economic potential
Becoming the tourism axis for Malabar, Waynad, South Karnataka , Coorg
Access to 1,800 acres of land for development, leading to more advertising opportunities
Airport which is technologically
mature in order to enhance value
for all stakeholders
Tech enabled airport
Increase in land value owing to
interventions by right strategic
stakeholders to generate
demand and develop the airport
as a commercial hub
Land Value
Optimizer
7
Supported by strong business and growth levers...
Tourism
• Beaches, backwaters,
ayurveda centers, Kerala
folklore
• Alternate gateway to Coorg,
Mysore and Mangalore
• Wellness resorts/centres and
Hajj traffic
Emigrant traffic
• NRK from Northern Kerala –
Middle East, Europe and SEA
• Almost 50% of Kerala
emigrants are from districts
such as Kasargod, Kannur,
Kozhikode, Wayanad and
Malappuram
Large parcel of Land
1800 acres of land area available
for utilization for:
• Integrated Aerotropolis
• Airport development
Developing economic landscape
within the catchment area
Malls, schools and business
complexes coming up in the area
Primary Catchment
Kannur, Wayanad and
other parts of North Kerala
Kannur International Airport
Primary catchment
Secondary catchment
Secondary Catchment
• Dakshin Kannada (Mangalore
– 165 Kms)
• Coorg (70 Kms) , Mysore (128
Kms)
• Malappuram (134 Kms) and
Kozhikide (92 Kms)
Key Business Drivers
8
Aided by NRKs – a key target segment…
Kannur District Indicator Value
Area (sq km) 2,966
Population (2011) 2.523 Million
Age group distribution (2011) 0-14: 23%, 15-59: 64%, 60+: 13%
Literacy Rate (2011) Male: 97.54%
Female: 93.57%
GSVA (2017-18, constant prices), INR 316,054 million
Per capita GSVA (2017-18, constant prices), INR 121,559
Number of Non-resident Keralites (NRKs) 3.44 lakh (3rd highest among districts in Kerala)
Top 5 destination countries for emigrants from KeralaUAE – 39.1%, Saudi Arabia – 23%, Qatar – 8.7%
Oman – 8.6%, Kuwait – 6%
Amount of NRI bank deposits in Kerala (2018), INR 169,944 crore
Growth rate of NRI deposits (2013-18) 20.75%
Source: Economic Review 2018, Kerala State Planning Board
A significant number of passengers traveling through Kannur Airport comprise of non-resident Keralites (NRKs) - emigrants settled
predominantly in the Gulf countries
Remittances sent by these NRKs has played a significant role in the development of Kerala in general and Kannur in particular
Airport advertising targeting the NRKs could be highly effective in Kannur Airport, given the target segment eyeball hits
9
Bidding Process
• The Bidder may be a single entity or a group of entities/existing joint venture, coming together to implement the Project
• Term – 7 years
• Document Fee – An amount of INR 100,000 (One lakh rupees only)
• Bid Security - An amount of INR 1,000,000 (Ten lakh rupees only)
S No Event description Date
1. Reconnaissance Visits by Prospective Bidders* On or before 27 February 2020:1700 hrs
2. Last date for receiving queries 26 February 2020; 1700 hrs
3. Pre-Bid Conference 28 February 2020; 1130 hrs
4. Kannur Airport response to queries latest by 4 March 2020
5. Bid Due Date / Bid Submission Date 13 March 2020; 1400 hrs
6. Opening of Qualification Bids 13 March 2020; 1600 hrs
7. Evaluation of Qualification Bids 3 days from Bid Due Date
8.Financial Proposal Opening for Qualified Bidders &
Announcement of Selected Bidder6 days from Bid Due Date
9. Issue of Letter of Award (LOA) Within 7 days of Financial Bid Opening
10. Signing of Advertising Agreement Within 30 days of Letter of Award
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Bidding Process
Bidding
Authority has provided:
• Terms of Bidding
• Eligibility & Evaluation Criteria and
• Scope of Work
Award of project
• Kannur Airport has provided for a single-stage process for selection of bidder.
Financial Bid
Qualification Bid
Bids from bidders
Qualification Bid
Eligibility Criteria
✔
Financial Bid Financial Bid Evaluation
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Eligibility CriteriaTechnical Eligibility
The Bidder (in case of consortium, the Lead Member) must have minimum 4 (four) years of experience in the
last ten financial years (FY 08-09 to FY 18-19) as an Advertising Licensee in at least 2 (two) airports in India
or abroad, of which at least 1 (one) airport must be handling more than 2 million passengers per annum during
each year of the Agreement.
Financial Eligibility
The Bidder, along with its group subsidiaries, must have achieved average annual turnover of at least INR
20,00,00,000/- (Rupees Twenty Crore) in past three (3) financial years (preceding FY 2019-2020)
(“Financial Capacity”).
12
Evaluation
• The Bid Parameter will be the total Minimum Guaranteed Fee payable by the Bidder over the duration of the Term.
• The Minimum Guaranteed Fee for each year will be calculated based on the Revenue Share Percentage as well as
the Projected Gross Revenue quoted by the Bidder in the Financial Bid.
No Year 1 2 3 4 5 6 7
a) Projected Gross Revenue –
quoted by bidder
100 200 300 400 500 600 700
b) Revenue Share Percentage –
quoted by bidder
70% 70% 70% 70% 70% 70% 70%
c) Minimum Guaranteed Fee payable -
a) × b)
70 140 210 280 350 420 490
• The total Minimum Guaranteed Fee for the duration of the Term comes out to be 1,960. This calculation will be
done for all Bidders and the one with the highest value of Minimum Guaranteed Fee shall be the Selected
Bidder
• A sample calculation is shown below.
Minimum
Guaranteed Fee
Projected Gross
RevenueRevenue Share
Percentage
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Expectations from the Advertising Licensee
1. Digital spaces and use of technology – The Advertising Licensee is expected to leverage the latest technology for
development of advertising spaces at Kannur Airport. This would include, inter alia, development of state-of-the-art
digital advertising spaces and using innovative technology for advertising.
2. Designs and materials to match with the aesthetics of the airport – The Advertising Licensee shall develop the
advertising infrastructure in such a manner that it blends smoothly with the overall aesthetics and general features of
the airport. The quality and type of materials used for building the infrastructure should match with those used in the
airport.
3. Locations – Work with Kannur Airport for development of advertising locations both inside the terminal building as well
as other spots in the airport land.
4. Brands and Partnerships – Develop long-term partnerships with contemporary brands and advertisers to enhance the
passenger experience at Kannur Airport.
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Annexures
15
Potential Media Bucket at Kannur Airport
High Value Mid - Low Value
Ambient Lit Billboard - Large Format Ambient Lit Billboard - Small Format
Video Wall Pillar Branding
Gantries - Access Roads Escalator Branding
Unipoles - Access Roads Baggage Belt - Arrival
Backlit box - Large Format Ceiling Dropdowns
Fixed Digital Asset - Large Branding of FIDS & other information screen
Aerobridge - Exterior & Interior Washroom Branding
Landmark Installations Baggage Trolleys
Product Displays Queue Managers
Promotion / Activation Glass Facade - Small Size
Glass Facade - Large Size Digital Standees
Content Partner for Entertainment Screens Planters / Green Area Branding
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Potential Advertising Locations – Departures (1/2)
17
Potential Advertising Locations – Departures (2/2)
18
Potential Advertising Locations –International SHA
19
Potential Advertising Locations – Arrivals (1/2)
20
Potential Advertising Locations – Arrivals (2/2)
21
Potential Advertising Locations – Baggage Handling Area
22
Potential Advertising Locations – Escalators near Arrival
Thank you!
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