Thiruvananthapuram:

The managing director of the proposed Kannur International Airport Limited (KIAL), V. Thulasidas, has resigned. The international airport is expected to give a fresh boost to the commercial prospects of the Malabar region in north Kerala, besides being a boon to the tens of thousands of air travellers from that region.

Thulasidas met minister K. Babu in person and handed over his resignation on Friday. The resignation comes in the wake of controversy over the consultancy contract of the airport project. The deal between KIAL and the consultancy company STUP had been questioned after it was found that the latter had been blacklisted in Gujarat and some other states. Initially, however, KIAL took the stand that the consultancy company was competent to handle the work.

A Kochi-based company, Mir Projects and Consultant,s had gone to court regarding this matter, and the court is likely to give its verdict soon. Even before the court verdict, the airport company’s agreement with the blacklisted company was cancelled. The state government had also raised queries regarding the consultancy deal approved by KIAL.

Thulasidas had earlier been the chairman and managing director of India’s national carrier, Air India. His resignation has further dampened the prospects of KIAL, which will be a setback for the large number of air travellers from north Kerala and parts of Karnataka.