AAI staff issue holding up airport privatisation

Privatisation of airports at Ahmedabad, Chennai, Jaipur and Kolkata had been delayed by furore over the future of the 2,000-odd Airports Authority of India (AAI) employees who worked in these, RK Srivastava, the authority's chairman, said on Monday.

"There are issues related to human resources. The concerns of the employees need to be addressed," said Srivastava explaining why the deadline for applying for privatisation auctions of these airports had been extended.

The AAI had in January invited bids to transfer the management, development and operation of the four airports to private companies on a revenue sharing model. This has drawn flak from airport employees.

"Tariffs are another issue. Prospective bidders have raised concerns and those related to employees is one of them. A concerted decision has to be taken," the AAI chairman said at a media briefing. Srivastava said employees were demanding their service conditions not be compromised with. There are around 2,000 AAI employees working at the four airports, according to a trade union official.

The last date for submission of request for qualification documents was March 26. This was extended to May 26 because the government was revising the bidding terms, sources said. Trade unions fear privatising the airports will lead to job losses and a dip in the AAI's revenues. The unions had called for a strike on March 11 but did not proceed with it after the central labour commissioner intervened. The commissioner has scheduled March 30 as the next meeting between the unions and the AAI management.

The government has incorporated a 100 per cent manpower absorption clause for bidders. At the time of privatisation of the Delhi and Mumbai airports in 2006, the manpower absorption clause was for 60 per cent of AAI employees by the companies that won the auctions.

Private airport operators say they will not be able to bid until they are clear about the freedom they will have in dealing with employees.