Adani Trivandrum International Airport Ltd. (ATIAL) of the Adani Group that has bagged the bid for operating and managing the Airport Authority of India’s (AAI) Thiruvananthapuram international airport for 50 years will get control of the airport only after the agreement is executed and the performance bank guarantee is paid. This is estimated to take around eight months.
The ATIAL has prepared a road map to take over the airport before the new government takes charge after the Assembly elections in 2021, official sources associated with the airport privatisation process told The Hindu.
The AAI will soon issue the Award of Letter to the ATIAL, following which a lease agreement for 50 years between the AAI and the ATIAL will be executed. The ATIAL will then have to submit the performance bank guarantee to the AAI.
ATIAL personnel will fly down to Thiruvananthapuram and observe the operations closely for two months and take over the commercial operations of the airport as per the commercial operation date. The date for Lucknow, Mangaluru, and Ahmedabad airports, leased to Adani Group in the first tranche, is November 12.
Offers to staff
Once commercial operations are taken over, AAI officers in the grade of DGM and above in the airport will return to the AAI. Those up to the AGM grade will be retained in the airport as deemed ‘deputation.’ Within three years, the ATIAL will give two offers for 60% of the staff up to the AGM grade and they will have to decide on staying with the private player. If they do not accept the offer, the Adani Group will have to pay their salary and benefits till retirement.
A ‘novation clause’ will be introduced in the pact to wherein other agreements entered into by the AAI for various works will be entrusted with the ATIAL. Instead of the Airport Director, the operations of the airport will be headed by the Chief Airport Officer.
Compulsory clauses
There are compulsory clauses in the agreement to develop the airport before it is handed back after 50 years to the AAI. The AAI expects an upfront payment of ₹2,000 crore from the group which will be used for development of other AAI-managed airports. Air Traffic Communication and Air Navigation Services will remain with the AAI in lease period.