DIAL will absorb all AAI employees of IGI Airport

NEW DELHI: Removing uncertainty about the future employability of over 2,300 Airports Authority of India (AAI) employees at Delhi, the new airport operator, Delhi International Airport Limited (DIAL) said on Tuesday that it would absorb all the AAI employees working at Indira Gandhi International Airport. DIAL - the joint venture company set up to modernise Delhi airport - said each employee would be given one-time lump sum joining bonus, apart from two increments on the basic salary.

DIAL board of directors has approved the proposal for the absorption of all employees of AAI on Tuesday. The bonus would range anywhere between Rs 25,000-60,000, depending on the employee’s designation.
The company, in which private companies have 74% stake while the AAI has the remaining 26%, also said that all the existing benefits, designation, welfare measures, general conditions and leave entitlement will remain same. "The offer would not only incentivise over 2,300 AAI general employees to exercise their option to join DIAL but also eliminate any uncertainty in their minds," a company spokesperson said

While the Operation, Management and Development Agreement (OMDA) - signed between AAI and DIAL - stipulates the new airport operator to absorb at least 60% of AAI employees during the Operation Support Period of three years till 2009, the joint venture company has decided to offer employment to all the employees.

Sources in DIAL indicted that if all the employees accept the proposal, the additional tab for the joint venture would come to anywhere between Rs 700-800 crore. OMDA also requires that the offer by the new airport operator should be no less attractive in terms of salary and position, than the existing terms of employment.

DIAL further said that it would protect any revision of pay and allowances promised to AAI employees due from January 1, 2007. The new airport operator - which is a JV of GMR Group, AAI, Fraport AG, Eraman Malaysia Airport and India Development Fund - would also impart fresh training to existing employees to upgrade their skills and capabilities.
The new offer is likely to find favour with the AAI employee union that has earlier raised objections to private participation at Delhi airport fearing that it might result in job losses for AAI. It is also expected to silent the Left parties which have been opposing involvement of private companies for airport modernisation.

Apart from speeding up the modernisation process at Delhi airport, the DIAL offer is likely to put pressure on GVK-led consortium which is modernising the Mumbai airport. Speaking to ET, a GVK official said: "Apart from honouring OMDA, we are also exploring various other options, including 100% absorbing of AAI employees. A decision in this regard will be taken in future."