Picket lines go up and workers clash with police as controversial airport privatisation plan goes ahead.

New Delhi (AsiaNews/Agencies) – After the Delhi High Court issued a restraining order against picket lines, air services in Delhi, Mumbai and Kolkata were almost back to normal. The strike however continues limiting the number of flights. Since February 1, 30,000 airport workers have been on strike to protest the privatisation of the airports of Mumbai and Delhi which account for 65 per cent of India's air traffic, 14 million passengers in Mumbai alone.

The Indian cabinet on Wednesday announced that within three months the airports will be managed by private consortia of local companies and foreign partners.

The New Delhi contract went to a consortium led by GMR, an Indian construction company, and Fraport, which owns and operates Frankfurt airport. The Mumbai airport is to be revamped by GVK, a Hyderabad construction company, and its strategic partner, Airports Company South Africa.

The private consortia will control a 74 per cent stake in the airports—compared to the Airports Authority of India (AAI) which will retain 26 per cent—and hold a 30-year lease renewable for another 30 years.

India's Civil Aviation Ministry said that all employees will be retained for the first three years. The two bidders will then be able to retain 40 to 60 per cent of the current staff. This has worried employees about job cuts and is behind their willingness to continue the strike.

Meanwhile, the unsuccessful bidders have questioned the transparency of the bidding process and threatened legal action, arguing that the contracts were "illegal and arbitrary". This might further sideline the privatisation process began in 1998, already stalled by India's bureaucracy and airport employees.

India's 124 airports are ramshackle and in urgent need of improvement given the requirements of a fast-growing Indian economy. With passenger traffic rising by more than 25 per cent last year, it is estimated that number of passengers will top 50 million by 2010.

Existing airport facilities are instead inadequate, small and dirty, often without passenger lounges, with flights frequently delayed. Planes are often forced to circle for more than 30 minutes whilst waiting for a landing slot. Mumbai and New Delhi airports can handle only 30 planes per hour compared to the global standard of 75.

The government estimates the two airports require up to Rs 200 billion (US$ 4.53 billion) over a five-year period to construct much-needed parallel runways, world class terminals and shopping facilities.

The revamped airports are should be ready by 2010 when India will host the Commonwealth Games.

Similar initiatives are expected in an additional 20 to 30 airports. (PB)

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