AAI management assures unions of job security post privatization but all not convinced

AAI is developing small RCS airports which will take years to be profitable. If Kolkata airport is privatized, how many new airports would be needed to absorb the current staff, counters a senior staff.
AAI

TLI Staff

New Delhi: Senior Airports Authority of India (AAI) management has assured employee unions that there will not be job loss even as more state-run airports are leased out to private companies. Instead, it will hire manpower to meet the growing need of running the airports being developed in smaller cities and towns.

“The leasing of AAI airports will not snatch reservation policy nor reduce employment opportunity for the reasons AAI has been establishing greenfield airports, RCS airports, developing airstrips at many states as full-fledged airports. Therefore, requirement of manpower at these airports will be there,” BK Mehrotra, Executive Director (SIU) has written to Joint Forum of Unions and Association of AAI.

But even some of the top AAI executives are not convinced by the logic saying that privatization will force people to leave.

“AAI is developing small RCS airports which will take years to become profitable. Then the question is how many people would be needed at these airports. If Kolkata airport is privatized, how many new airports would be needed to absorb the current staff?” an official asked.

“This aside, there would be huge relocation. Many people may opt out from the job,” he added.

In a letter dated January 9, AAI management has argued that leasing of airports to private companies would bring efficiency in delivery, expertise, enterprise and professionalism apart from harnessing the needed investment in the public sector.

The official quoted above countered this saying that AAI-run airports had been getting good Airport Service Quality (ASQ) ratings. It has also been consistently investing in upgradation and modernization of airports which are now being privatised.

“Most of the airports which are being developed by private developers are either slow or non-starter,” he said citing the example of Mopa in Goa and Navi Mumbai.

There has not been much development in case of three airports — Ahmedabad, Lucknow and Mangaluru for which Cabinet gave approval in July last year for leasing out to Adani Enterprises. The three other airports for which Adani is the highest bidder, letter of award is yet to be given.

Justifying the move to privatize the six airports, the AAI management has said that the action plan has been evolved in order to meet the growing demand of airport infrastructure. Further, participation of private sector is being encouraged so that AAI would develop other airports to bring economic development and growth on pan-India basis.

“This will also result in enhanced revenues to the AAI, which may lead to further investment by AAI at tier-II and tier-III cities and economic development in these areas in terms of job creation and related infrastructure,” the AAI ED Mehrotra said.

The AAI Board has given its nod to lease out another six airports including Varanasi and Amritsar to private companies.

“The functioning of the government has been such that nobody dares to argue and present things in right perspective to Niti Aayog or PMO,” a for AAI board member said.