The Indian government has finally demonstrated its commitment to taking strong steps towards privatization. Amid phenomenal protest from the AAI baabus the government has decided to go ahead with the plans of privatizing the Mumbai and Delhi international airports.
So what's happening:
- 1. New Delhi: GMR Fraport has bagged the deal for modernization and running of the airport. They were initially not the best bidder, however due to their demonstrated ability to build, maintain and manage airports they were offered a chance for rebidding.
- 2. Mumbai: GVP-Airports south Africa have bagged the deal. Since Fraport chose to go for the New Delhi airport.
Reliance was left hapless as both the deals slipped from their hands, and they have started crying about loud and threatening to take legal action saying their bids were not properly considered. It was quiet obvious from the beginning though that Fraport will bag atleast one deal, since they were technically the most experienced and efficient.
Gone are the days of sleazy airport workers, smelly terminals, nonexistent duty free shopping, rude customs officers, and dodgy checkin officers. We can look forward to some good stuff from both these consortia. I have been to the Frankfurt airport (managed by Fraport), Europe's second largest airport, it is an amazing example of German efficiency how they have managed to keep the airport working so efficiently even with unplanned expansions and increasing traffic.
I hope they repeat the performance in India.
PS: Interesting point: The UPA goverment for sure will tout the deal to show their commitment to a modern India. But lest we forget, the actual plan to modernize the airports and privatize them was kicked off by the BJP goverment early last year!
1 comment:
Interesting view, but for me privitization is nothing but giving power to managment so that they can strategically shape the future of the enterprise in order to make profit. And having enough regulations around to ensure that the profit is fare and is a result of customer satisfaction.
Granted that managers were not given autonomy in Indian airports before, but they definatley did have the authority to stop all the sleazy corruption, minor frauds on the airport, the rudeness of the employees and the general state of affairs at the airports. But they didn't. THe reason why the public is happy about privatization is because they are sick of seeing crappy, disfunctional airports. Make them work, and no one will cry...
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