Airports privatisaion: 'Government wants to address HR issues first'

Government had to push the bidding date for privatisation of four AAI-run airports as it wanted to address human resources issues first before they go into the private hands, even as the whole process was on fast track, a top AAI official said on Monday.

"There are many issues. There are issues relating to human resources. A concerted decision has to be taken (on such issues). Whatever are the concerns of the employees, they would be addressed by the Government," Airports Authority of India (AAI) chairman R K Srivastava said.

Srivastava said whatever are the concerns of the employees would be addressed by the Government, adding that "the service conditions of employees should not be" compromised with.

The Chairman also said that issues such as tariff fixation for these airports were also there but did not elaborate further. The AAI was trying to fast track the privatisation process, he said, adding that, "We have to now formulate the Request for Proposal. We are ensuring all timelines are met."

The AAI, which had invited Request for Qualification (RFQ) to handover the management, operations and development of Kolkata, Chennai, Jaipur and Ahmedabad Airports last year, had last week extended the due date for submitting the RFQ March 24 to May 26. It had, however, not given any reason for pushing the deadline at that time. 

The AAI employees union, however, are opposing privatisation of government-run airports on the ground that the move would lead to a further dip in AAI revenue besides massive retrenchment of the manpower.

Replying to a question on the proposed listing of the AAI, he said the required groundwork was being carried by the company. The listing also required amendment in the AAI Act, which would be done only by Parliament. The union had given a strike call on March 11 to protest the move, which it deferred till further notice following the intervention by the chief labour commissioner. The CLC has fixed March 30 as the next date of meeting between the union and the management.

The Government is now contemplating to incorporate a 100 per cent manpower absorption clause for the bidders to pacify the union on the issue. In the earlier OMDA (operations, management and development agreement) with the GMR and GVK group, who now operate Delhi and Mumbai airports, the provision was for 60 per cent absorption of AAI manpower post privatisation.

Corporates including Tata and Adani groups and existing airport operators GMR and GVK groups besides some foreign players have shown interest in the these airports following the RFQ.