GMR-Fraport and GVK-South Africa Airports on Tuesday won contracts for modernization of Delhi and Mumbai airports, respectively, but the restructuring move immediately resulted in employees striking work at several airports. There were no reports of flight disruptions. Ending 3 1/2 years of policy waffling, the Indian Government announced contracts to private companies to modernize Mumbai and Delhi airports. The losers to the bid include Indian conglomerate major Reliance accused the Government of irregularities in allotment of contracts. The Government refuted the charges saying that no rules were bent to accommodate any bidder.

The labor unions, supported by communist allies of the Government, have been threatening a national strike to protest this privatization. They fear that there will be mass job shedding if private operators run airports. Government owned aviation and airports employ the highest number of personnel per airplane and airport in the world. The Government has place IAF and services on high alert to fill in for striking employees so the airports remain open and business does not shutdown.

India has laws that ban strikes in critical sectors such as aviation and there is a Supreme Court verdict that bans state-sponsored or national strikes. However, the ban is only applicable if the Government asks for a ruling. It is not clear if the Government will invoke these provisions and incur the ire of their communist allies.