Competition next door, Delhi airport planning salary hike, bonus for staff

Delhi International Airport Limited (DIAL), which runs India's busiest airport, is planning salary hikes and bonuses to retain its workforce as it braces for fierce competition from Noida airport's operator, Yamuna International Airport Private Limited (YIAPL).

- DEEPAK PATEL

Delhi International Airport Limited (DIAL), which runs India's busiest airport, is planning salary hikes and bonuses to retain its workforce as it braces for fierce competition from Noida airport's operator, Yamuna International Airport Private Limited (YIAPL). DIAL admitted that these pay raises will have a "considerable" impact on its total manpower costs.

GMR Group-led DIAL has urged the Airports Economic Regulatory Authority (AERA) to approve higher aeronautical tariffs from airlines and passengers, citing financial pressures from the Noida airport, which is coming up about 70 km away. Beyond rising employee costs, it expects a surge in advertising expenses and a potential squeeze on cargo and air traffic revenues as competition hots up.

YIAPL, a subsidiary of Zurich Airport International, is currently constructing Noida Airport in Jewar, Uttar Pradesh.

The airport was initially scheduled to begin commercial flight operations in September last year. However, its deadline has been postponed twice. It is now expected to start operations later this year.