Battle lines are drawn in the bid for outdoors advertising rights at the domestic and international terminals at Kochi and Coimbatore airports. Five OOH companies have been shortlisted for the final round after evaluation – Laqshya Media, Times OOH, TDI International, P-Corp and ETA, a new entrant from Chennai. The technical evaluation of the bids is underway and the process is expected to take 2-3 months.
Yuvraj Agarwal, COO, Airport & Ambient Media, Laqshya Media Pvt Ltd, told exchange4media, “Laqshya has bid for both the airports as it aims to build a network of airports for its clients so that brands can be showcased across airports at one single time.”
Giving an insight on both the airports, Agarwal said, “As far as the Coimbatore airport is concerned, the Airport Authority of India has been positive about its modernisation, which is why it has already invested around Rs 10-15 crore on the upgradation of both the runway and the terminal. Also, after Chennai, it is the second largest airport in South India that has a traffic growth of 35-40 per cent from what it used to have some time back.”
“Kochi International Airport, on the other hand, has its own history. It is the first ever airport project in the country that was implemented under the PPP model and is the only airport in India where traffic for international flights is more then domestic flights, as a result of which, today it has a foreign footfall of 1.8 million people as against 1.6 million domestic travelers. Secondly, it is probably one of the only airports in the world where duty free shops have been run successfully by the Authority, which in this case is CIAL (Cochin International Airport Ltd.),” Agarwal pointed out.
Market experts feel that after the deal is struck for both the airports, the earnings in terms of revenue will increase by over 30 per cent from the current revenue figures, which stand at Rs 35-50 lakh per month for Kochi and Rs 10-15 lakh per month for Coimbatore.
Sources close to the development have revealed that CIAL’s expectation of a minimum annual royalty of Rs 3 crore per month from advertising rights at the Kochi airport is far ahead of the current figures for the Delhi airport. According to them, the best deal for both the airports should be around Rs 20 lakh for Coimbatore airport and Rs 35-50 lakh for Kochi.