At least 50,000 employees of various airlines might lose their jobs on January 1 if the government’s new policy of outsourcing ground services is implemented.
At least 50,000 employees of various airlines might lose their jobs on January 1 if the government’s new policy of outsourcing ground services is implemented.
The new policy bars private and foreign airlines from handling ground services such as baggage clearance, passenger check-ins and transport at six metropolitan airports, including Mumbai. Employees’ unions of Gulf Air, British Airways and Saudi Arabian Airlines have moved Bombay High Court challenging the government’s policy of outsourcing such services to third parties on a revenue sharing basis. The petition is likely to be heard by the high court’s vacation bench on December 29.
A circular from the Director General of Civil Aviation in September 2007 says airlines will choose one of the ground handling agencies selected through competitive bidding by the airport operator. The Mumbai International Airport Pvt Ltd (MIAL) has shortlisted two consortiums —- one led by a Turkish company and the other by a Mauritius firm. Delhi, Bangalore, Kolkata, Chennai, and Hyderabad airports too have shortlisted third parties through open tenders in compliance with the new policy.
The petition alleges that the government’s move is aimed at creating a monopolistic situation to help airport operators generate more income. The Aircraft Rules empower government to permit anyone to provide ground-handling services subject to security clearance but there is no provision of ‘revenue-sharing’ or to withdraw permission for self-handling by airlines. The petition also raises security concerns of authorising foreign companies to provide such services at sensitive airports.
The Centre’s affidavit justifies the new policy saying with the growth in aviation sector and entry of new airlines, the number of entities providing ground services, including undertaking self-handling, has increased substantially. This has led to multiplicity of equipment and personnel raising safety and security concerns and making it difficult to maintain standards. By limiting the number of agencies providing ground services, the government hopes to provide world-class facilities and greater efficiency. Also, the government wants to generate revenue by outsourcing these services.
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