GMR DIAL announces attractive absorption policy for Airports Authority of India employees at IGI Airport

GMR Infrastructure Ltd has announced that the Board of Directors of Delhi International Airport (P) Ltd (DIAL), a subsidiary of the Company, on December 18, 2006, has approved the proposal for the absorption of all General Employees of Airports Authority of India (AAI), working at Indira Gandhi International Airport, New Delhi.

DIAL is a joint venture company (JVC) comprising, GMR Group, Airports Authority of India, Fraport AG, Malaysia Airport and IDF.

As per the 'Operation, Management and Development Agreement' (OMDA), signed between AAI and DIAL, DIAL is to make offer of employment to a minimum of 60% of AAI employees based at IGI Airport during the Operation Support Period. The terms of the offer should be no less attractive in terms of salary and position, than the existing terms of employment.

It is observed that some of the employees have lot of inhibitions / apprehensions that in case DIAL was to offer and absorb 60% of the employees on selection basis, what will happen to the rest of the employees. Further, the employees are also concerned about being posted outside Delhi after the Support Period which may impact their children's education and well-being of their aging parents.

In order to address these concerns of the employees, DIAL has decided to extend the offer to all 100% AAI employees based at IGI Airport, New Delhi.

The salient features of the offer are as follows:

- All General Employees AAI to be given 2 increments on their basic salary, in their current scale.

- A one time lump sum joining bonus to be given to AAI employees.

- Effect of revision of pay and allowances due from Jan 01, 2007 will be protected.

- All existing benefits, designation, welfare measures, general conditions and leave entitlement wilt remain same.

- The employees will be given an opportunity to upgrade their skills to meet the future challenges effectively by imparting extensive training.

The attractive and fair offer would not only incentivise over 2300 AAI General Employee to exercise their option but would also mitigate and eliminate the uncertainty in their minds and will address concern(s) about their future career with IGI.

The DIAL management is confident that the offer will help speed up the modernisation process. The process of training and upgrading skills of all employees to match up to the technological advancement and ambitious target to achieving 3.5 Airport Service Quality ASQ will accelerate the process of converting the IGI airport into a world class airport before the Common Wealth Game 2010

As part of the recently submitted Master Plan to the Ministry of Civil Aviation and Airports Authority of India for the modernization of Indira Gandhi International Airport, DIAL will construct a new runway by 2008 to supplement the existing two. Cat III B complaint, 4430 m long Code F runway would be able to host A 380 type wide bodied large aircrafts.

In addition a brand-new integrated passenger terminal to cater to domestic and international traffic will also be built. This terminal will become operational in March 2010 and in its first phase be able to handle more than 37 million passengers per annum. The airport is being designed with an ultimate capacity of 100 million passengers per annum.

Source : Equity Bulls

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