Take off, at last

The modernisation plan needs to be pressed forward with all speed. Even the Left parties, who have been obstructing privatisation, do not dispute.

By signing the crucial Operations, Maintenance and Development Agreement (OMDA) and the shareholders’ agreements with the two consortia selected for modernisation of the Delhi and Mumbai airports, the government has ensured that the process of bringing the country’s two major airports into the modern age does not get further delayed or even derailed. That India’s main aerial gateways to the world were in desperate need of refurbishment and investment was obvious would be an understatement. Even the government-owned Airports Authority of India (AAI) had recognised the fact that capacity at these airports was getting stretched and infrastructure had to be upgraded. That was in 1993, when only one private player had started operations, with a mere four aircraft.

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Contrast this with the situation today, with dozens of private airlines, hundreds of flights everyday and annual traffic of 36 million passengers, growing at over 20 per cent per annum. The fragility of the current infrastructure became glaringly obvious when AAI unions went on strike protesting against privatisation. The issues at stake are far graver than the dirty toilets or garbage mountains and delayed flights which hit passengers during the strike period, though a comfortable travel experience is undoubtedly important. Safety and efficiency are far more critical, both for passengers and airline operators. The number of mishaps and ‘near-misses’ at our airports has risen alarmingly. Inadequate infrastructure is forcing delays on airlines and putting safety systems under extreme stress.

On this ground alone, the modernisation plan needs to be pressed forward with all speed. Even the Left parties, who have been obstructing privatisation, do not dispute this. The other argument, that AAI staff will lose jobs, also does not wash. Bidders will absorb 60 per cent of the current staff, 10 per cent will stay with AAI, another 7-8 per cent will retire and the balance will be absorbed in AAI’s 118 remaining airports. Besides, airport management is a special art and there will be demand for specialised skills. But privatisation will reduce the power of unions, which might be the real reason for the Left’s antipathy.