Bill to hive off air navigation services from AAI to be finalised soon

Move has sparked off protests from AAI employees who are resisting creation of ANS as a separate entity

The Centre has almost finalised the draft of the Bill seeking to separate Air Navigation Services (ANS) from the Airports Authority of India (AAI), seen as a precursor to listing the authority. A government source said: “The draft Bill is in its final stages. There are a few human resources issues that need to be taken care of. The ministry will send the draft Bill for Cabinet approval after getting a go-ahead from the law ministry.”

ANS, responsible for navigation, surveillance and air traffic management, is now under AAI. “The organisation that is being contemplated will be government-owned. The ministry is bringing in an Act,” said an AAI official.

Sources said Civil Aviation Secretary V Somasundaran will soon hold a meeting with AAI officials to finalise the provisions of the Bill. After consultations, the Bill will be sent to the Cabinet for approval and, subsequently, introduced in Parliament.

AAI employees are opposing changes in their services conditions. “The employees who would no longer be a part of the ANS are opposing it. They fear if ANS is segregated, there will be a considerable dip in the AAI’s revenues as the navigation services form a major part of the airports authority and this will have repercussions on them in the long-term,” said an AAI official.

According to official estimates, ANS constituted around 30 per cent of the AAI’s revenue in 2014-15. Under the provision estimates for 2014-15, AAI’s revenue stood at Rs 8,743 crore and ANS’ revenue was Rs 2,430 crore.

After ANS is hived off, the aviation ministry will begin the process of listing AAI.

Aviation experts have urged the government to hive off ANS from AAI for the operational, financial and administrative independence of the former. Around 40 countries including Australia, Canada and the UK have commercialised their ANS.

This is the second time the AAI is facing labour troubles. The government's plans to privatise four airports - in Ahmedabad, Chennai, Jaipur and Kolkata - have been held up following opposition from employees at these airports over changes in their service conditions following the move.