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BENGALURU AIRPORT: CRISIS LEADERSHIP THROUGH A PANDEMIC

Somnath Baishya and Dr. Gita Bajaj wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized, or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) [email protected]; www.iveypublishing.ca. Our goal is to publish materials of the highest quality; submit any errata to [email protected]. i1v2e5y5pubs Copyright © 2022, Ivey Business School Foundation Version: 2022-02-09

At 8:00 a.m. on a typical June morning, it would be rush hour, with the constant buzzing of planes taking

off and landing at Bengaluru Airport, the third-busiest airport in India. Not today, however; 2020 was

different. Hari Marar, chief executive officer (CEO) and managing director of Bangalore International

Airport Limited (BIAL)—a consortium that operated Bengaluru Airport—had received two emails related

to the COVID-19 pandemic that worried him. The first was from his chief human resources officer (CHRO)

sharing a media report on the Bengaluru-based infrastructure giant GMR Group, which operated India’s

Delhi and Hyderabad airports. GMR Group had decided to cut salaries for its employees by up to 50 per

cent.1 The other email was about Austin-Bergstrom International Airport, one of the fastest-growing

airports in the United States, which was envisaging a three-year delay in its expansion.2 Marar wondered

what these developments indicated, whether Bengaluru Airport should follow the example of Delhi and

Hyderabad airports, and whether his team should postpone their ambitious airport expansion project.

Marar and his team were on schedule until the COVID-19 pandemic began in December 2019. Everything

then flipped within a few weeks. Country after country advised their citizens to stay home and maintain

social distancing to control the spread of the virus. The global aviation industry came to a halt. BIAL’s

passenger volume in January–May 2020 was half of what it had been in the same period in 2019. Cargo

operations and non-aeronautical revenues from food and beverage, retail, and lounge services had seen a

similar decline. At the company’s last board meeting, there had been long conversations and concerns

voiced about the airport’s expansion and planned investments.

The COVID-19 crisis was a rare and complex situation. Information was scattered and laced with

contradictions. Being dynamic, the crisis had challenged the team’s ability to adapt, and there was no end in

sight. Leadership team meetings since the start of 2020 had been intense; Marar recalled the many difficult

questions and passionate debates that began as soon as the team detected the first signals of the emerging

crisis and were compounded by the extended nationwide lockdown declared in late March. What strategies

1 Press Trust of India, “GMR Group Cuts Employees’ Salary by up to 50% Due to Covid-19: Report,” Business Standard, June 3, 2020, https://www.business-standard.com/article/current-affairs/gmr-group-cuts-employees-salary-by-up-to-50-due-to- covid-19-report-120060201609_1.html. 2 Bryce Newberry, “Austin Airport Expansion Delayed as Passenger Traffic Plummets during COVID-19 Pandemic,” KVUE- TV, May 20, 2020, https://www.kvue.com/article/travel/coronavirus-austin-airport-expansion-delayed-passenger-travel- low/269-4c768855-3d09-491e-9462-7985016501bc.

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would ensure the safety and security of their staff and ensure business continuity in the face of widespread

infections? As layoffs became prevalent in the ecosystem, would BIAL be able to provide psychological

safety for its staff? How would BIAL cope with the financial loss, the project delays, and the sudden ceasing

of the usual hustle and bustle at the airport? As one of the fastest-growing airports in India, was Bengaluru

Airport now ready to resume operations, and what could it do to rebuild passenger confidence?

Marar had to meet his leadership team at 9:00 a.m. on that morning in June 2020, and determine whether

to continue with the expansion or scale it down. The company’s board meeting was scheduled for August,

less than seven weeks away, and if the COVID-19 pandemic continued on its current trajectory it could

have a big impact on the expansion plans. How would his team justify the investments when the impact on

the airport’s regular operations had been severe?

THE ARRIVAL OF BENGALURU AIRPORT

Bengaluru had a small airport, which had been constructed in 1940. By 1998, it was evident that Bengaluru

would soon need a larger, international airport as the technology sector continued to invest exponentially

in the city, resulting in an inflow of talent from across the globe.

In 2006, a senior executive at the company developing the new Bengaluru Airport was travelling through

the city’s existing airport. At the time, Marar was the station manager at Jet Airways. The senior executive

told Marar that his company was building a new airport in Bengaluru and asked if Marar would like to see

it. At the time, the aviation sector in India was struggling with capacity constraints. The airlines and the

airports did not converse enough, the airports did not understand the needs of their customer airlines, and

the airports were struggling to meet the demands of the growing industry. In his response to the senior

executive, Marar candidly shared everything that he thought was wrong with the airports in India and what

needed to improve. He also stated what he would do if he had the chance.

Back to his work, Marar had almost forgotten about his conversation with the senior executive until he

received a call from his office three months later. The caller said, “We liked what you had to say. Would

you like to join us as the head of operations for Bengaluru Airport?” Marar laughed, saying that they were

making a big mistake trying to hire someone who had no idea about airport operations. But the caller seemed

sure, saying, “Don’t worry about that; we’ll adequately equip you with what you need to know. You have

the right ideas and the right attitude, which is what we’re looking for. So, join us.” That phone call in 2006

marked Marar’s shift from the airline side to the airport side of Bengaluru Airport. After multiple delays a

new greenfield airport commenced operations in May 2008.

In 2017, Fairfax Financial Holdings Limited (Fairfax), headquartered in Toronto, Canada, became the new

owner of BIAL. Marar, then president of Bengaluru Airport, and his colleagues were unsure of what this

would mean for their careers. Would they continue to work at BIAL? Would Fairfax start by revamping

BIAL’s existing leadership?

When Prem Watsa, chair and CEO of Fairfax, visited Bengaluru Airport for the first time, he told Marar,

“Listen, one of the reasons I had the confidence to buy this company is because I knew we had somebody

like you who can take charge.” Marar was surprised to receive such a compliment from Watsa, whose well-

known principled leadership had led to career successes.3 Watsa said:

3 Zen Jain, “Prem Watsa Explains Integrity Is the Cornerstone of Good Leadership,” Ivey (blog), July 14, 2020, https://www.ivey.uwo.ca/news/blogs/2020/july/prem-watsa-explains-integrity-is-the-cornerstone-of-good-leadership/.

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I have only two expectations from you. One, you will run this company as if it’s your own company.

And two, you will run this company with the understanding that I value reputation above

commercial results. So, make sure that this company is kept clean, ethical, and honest. Operate it

with the highest standards of integrity that you can imagine. That’s all I ask from you. The rest is

completely in your hands.

Fairfax promoted Marar to CEO and managing director of BIAL, a move that Marar believed was the

turning point of his career. A new CEO could not have hoped for a better start—Watsa had given him the

freedom to define the destiny of the business. Marar began by creating a strong leadership team who would

co-pilot the mission of building and managing an airport that would set global standards (see Exhibit 1).

Three of Marar’s earliest hires were Satyaki Raghunath as the chief strategy and development officer, Tom

Shimmin as the chief project officer, and Bhaskar Anand Rao as the chief financial officer (CFO).

Raghunath had built a career spanning two decades in the aviation sector. He had been associated with

Bengaluru Airport as project director for the master plan update through a consulting assignment during

2010–12. Shimmin left Bengaluru Airport in 2013 over differences with the previous management. For

Rao, the opportunity with BIAL was the perfect career challenge. He was impressed with the growth

ambitions for the airport, and he knew as CFO his role would be pivotal. Jayaraj Shanmugam joined BIAL

as a consultant in 2019, to elevate the customer experience at the airport. In February 2020, he was promoted

to senior vice-president of customer experience and operations.

Bengaluru’s economy was booming, driven by the technology sector. Each year, the airport scaled up its

operations from handling eight million passengers per year when inaugurated in 2008 to thirty-two million

passengers per year in 2018. Encouraged by this growth, BIAL announced a massive expansion plan valued

at US$ 2 billion.4 The team updated the airport’s master plan to optimize land use and build capacity to

handle ninety-two million passengers per year by 2040. This expansion plan involved the construction of a

new terminal building (T2), a multi-modal transportation hub in the new terminal and a second runway,

refurbishing the present terminal (T1), and upgrading connectivity options to the airport. All these would

optimize land utilization and grow the passenger handling capacity to seventy-one million per year over

two phases. While the second runway was scheduled to be operational by late 2020, T2 was pencilled for a

2021 completion. Marar and his team aimed to give the city of Bengaluru (formerly known as Bangalore)

a gateway to the future.

NAVIGATING THROUGH ROUGH WEATHER

On December 19, 2019, Dr. K. J. Devasia, head of the enterprise risk and corporate resilience group at

BIAL, was reading the newspaper and noticed a small feature mentioning a new virus in China that was

infecting people. That evening, while watching the news on TV, he found another fleeting mention of the

virus. Having followed the Ebola and SARS outbreaks, he began searching for news on the new virus every

day. Within three to five days, coverage on the virus had increased as more infections were reported. While

not yet significant, he flagged the development to the BIAL leadership team. On December 24, Devasia

compiled a summary report for the leadership team, adding his insights. Within minutes, Marar responded

and encouraged him to track the news and keep the leadership team updated on all developments.

On December 29, 2019, the Government of India’s Ministry of Health and Family Welfare issued an alert,

which the Ministry of Civil Aviation forwarded to Devasia. By early January 2020, the BIAL leadership

team could no longer ignore the virus, which had spread beyond China. The Government of India issued

4 All dollar amounts are in US dollars unless otherwise stated.

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an advisory on January 17 to avoid travel to China, and on the following day it mandated thermal screening

for passengers flying in from China and Hong Kong. This posed another challenge for the BIAL leadership

team. About 1,000 front-line staff—including those handling immigration, customs, transfers, and health

screening—were at risk because they could not avoid proximity to passengers. Similarly, maintaining high

standards of sanitation around the clock, every day, for a terminal that was operating over capacity involved

significant manual effort and was another high-risk area. Shanmugam shared the following thoughts in an

email to the leadership team:

We have to find technology-based solutions and find them fast to cut down on the exposure. We

cannot risk our people. And this is not a short-term problem. We have to think way into the future.

We have to look at emerging technologies in these areas that can address our scale of operations in

the future too. My team is already conversing with Raghunath’s strategy team. But I would like to

bring in all of you to explore possibilities.

A small team liaised with academic institutions like the Indian Institute of Science (IISc), Bengaluru, and

the Indian Institute of Technology (IIT), Mumbai, to understand the latest technologies available for

automated screening, robotic cleaning, and sanitation.

One day in late January, Shimmin expressed concern to Marar about the emerging developments around

the new virus and the reports of factories shutting down in China. One consignment in particular was worth

$80 million and was related to the material needed for the airport expansion project.

Shimmin: “The special-quality glass and bamboo, along with the runway lighting equipment we were

ordering from China, might get stuck. If we do not get the stuff out of there, then we risk a six-month delay

in the construction.”

Marar: “Is there a Plan B? Can we source it from anywhere else?”

Shimmin: “We have been evaluating alternatives. Italy is the only other place that makes that stuff. But we

would be delayed if we start all over again now. So no, we do not have a Plan B.”

A delay in the project could have led to further difficulties, and it had to be de-risked as early as possible.

Marar suggested that he converse further with Bhaskar, the CFO, and bring this up in the leadership team

meeting the next day.

While in London in early February to attend the Heathrow Expansion Advisory Board meeting, Marar was

surprised to note that many senior leaders there had not yet considered the potential risk from the virus,

while he continued to receive daily updates from Devasia. One such message required Marar to approve

the formation of a C-suite (CXO) task force under Rao’s leadership. Marar wondered whether his team was

overreacting or being rightfully prudent and proactive.

Effective February 4, 2020, the Government of India banned all India-bound airlines from boarding any

passengers from China, given the rapid spread of COVID-19 infections there. One of the first

responsibilities of the CXO task force was to ensure that all BIAL staff travelling internationally were

brought safely back to Bengaluru. The frequency of updates from the government and notifications that

required quick responses had increased from once every two to three days to multiple times a day. Every

regulation change created confusion. The CXO task force had to jump in to ensure that the affected

stakeholders were all informed and in agreement, to minimize confusion.

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Form a War Group?

At the leadership team meeting on February 10, after Marar’s return to Bengaluru, Devasia updated the

leadership on the gravity of the situation, summarizing the stringent compliance that the government

required and the execution challenges of addressing the changing needs. So far, to handle the situation,

Devasia was managing it informally, pulling in support from the BIAL staff as needed with help of the

CXO task force; however, this approach was not sustainable.

Devasia: “Not everyone in the BIAL staff has been prioritizing action and attention as they did not yet

appreciate the criticality of the situation.”

First leader: “What would be the right way to get you the needed support? Should we nominate a

representative from each department?”

Second leader: “Will we be spreading panic by formally establishing a war group at this stage?”

Marar: “What Devasia might need is more than just decisions. He might need people to implement the changes

so that we are compliant. [To Devasia:] The situation being dynamic, do you know who you need to help you?”

The leadership team conversed further to assess and decide on the best approach.

Managing Emergency Operations

A week later, the leadership team met again, and this time they discussed emergency operations. Although

regular passenger traffic had dwindled, airlines performing emergency evacuation of citizens around the world,

especially COVID-affected countries, now required airport services. Many teams were providing essential

services such as aircraft rescue and fire fighting (ARFF), the Aerodrome Operations Control Center (AOCC),

airside safety, terminal management, landside security, traffic management, and airport medical services.

The normal operating procedure was that if any team in a shift needed replacements, then staff from the

next shift were pulled in. However, now it was different. One of the leaders asked, “What if an entire team

in a shift had to be quarantined? Where do we get back-ups from?”

Shimmin: “Could we train some people quickly from other areas?”

Devasia: “We do have the quick response team.”

Marar, to the CHRO and Shanmugam: “We need to think beyond that. Can you both give this a thought

and come back in two days with the best way to have back-ups ready?”

Raghunath: “Raghav in my team used to be in the AOCC earlier. I am sure he still has some muscle memory

to back up his former team if there is a need.”

One of the most urgent requirements was to educate and train the entire staff and the front-line employees.

Training modules were created to promote awareness among the staff about COVID-19 and the typical

symptoms, precautionary measures, screening procedures, and steps to follow if someone tested positive.

The modules also equipped them to manage passenger touch point areas, including situations that could get

out of hand. e-Training modules and advisories were extended to the staff.

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Work from Home?

By early March 2020, COVID-19 had spread to 100 countries.5 On March 11, the World Health

Organization (WHO) declared that “COVID-19 can be characterized as a pandemic.” A pandemic was an

epidemic occurring worldwide or over a very wide area, crossing boundaries of several countries, and

usually affecting a large number of people.6 The WHO had deemed that COVID-19 was contagious, and

the number of people infected by one COVID-19 patient on average (known as the effective reproduction

number or R of the disease) was 1.83 in India in the March–April period.7

Organizations worldwide were evaluating options for working from home. This was another debated topic

in the BIAL team. “As a company in the infrastructure business, working from home was a taboo in the

minds of some people at BIAL. There was strong resistance when we started talking about it,” recalled

Pramod Rao, executive assistant to Marar. The workforce at BIAL was categorized into two groups: one

worked in a corporate office environment and could work from anywhere with the right connectivity; the

other ran operations and had to be on the ground. There was also a large number of staff engaged by the

various outsourced partners (see Exhibit 2). Rao said, “Marar was neutral to start with. He had to be

convinced one way or the other.” The leadership team was divided—some in favour of working from home,

some against, and the rest undecided.

First leader: “Our front-line staff have the highest risk of exposure. These are also the folks who have to work

from the airport, considering the nature of their work. So, working from home does not apply to them anyway.

How do we reassure them that we as leaders care for them as much as we care about the other employees?”

Second leader: “True. We cannot eliminate the risks, but can we minimize the same? Does the work-from-

home option enable us to minimize the risks?”

The leadership team had to make a decision.

Addressing Anxiety

The first loss of life due to COVID-19 in the state of Karnataka (of which Bengaluru was the state capital)

was registered on March 12, 2020. As the media coverage on COVID-19 increased, staff at BIAL monitored

the developments. Soon after, one of them tested positive. This was the moment the leadership team had

worried about. They had built a culture of transparency over the years, and now they were faced with the

question of respecting the privacy of the person concerned or sharing details with the staff. Should they

communicate proactively, or should they wait? Would holding back lead to a loss of trust or would it help

avoid unnecessary panic? There was always the fear of rumours spreading in an already charged environment.

In an email to the leadership team, the communications leader said, “We have to communicate from our

side regularly. The anxiety is high. They [BIAL staff] are looking at the BIAL leadership to provide them

with a better understanding of the situation. They are experiencing emotions in their family, among loved

ones, and where they live.” Marar and the other leaders agreed that communication and transparency were

5 Devesh Kumar, “Half A Million COVID-19 Cases in India: How We Got to Where We Are,” The Wire, accessed December 9, 2020, https://thewire.in/covid-19-india-timeline. 6 World Health Organization, Infection Prevention and Control of Epidemic- and Pandemic-Prone Acute Respiratory Diseases in Health Care - WHO Interim Guidelines, accessed December 4, 2021, https://www.who.int/csr/resources/publications/WHO_CDS_EPR_2007_6c.pdf. 7 Shreya Khaitan, “How Many People Does One COVID-19 Patient Infect in India?,” IndiaSpend, May 29, 2020, https://www.indiaspend.com/how-many-people-does-one-covid-19-patient-infect-in-india/.

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key, and swift action followed. Every week starting March 16, BIAL staff received an email update from

Marar (see Exhibit 3). To make it more authentic, the communications team also shared short video

messages from Marar. These emails and videos soon became popular among the staff because they

summarized key decisions and kept the staff informed.

GROUNDED DURING LOCKDOWN

By mid-March 2020, COVID-19 infection cases had started emerging in multiple states in India. A

nationwide lockdown was declared on March 24. Following the suspension of international flights, all

domestic flights were grounded effective March 25. To lower the risks of transmission, people were urged

to stay indoors until April 14. In April, the WHO reported that over two million cases of COVID-19 had

been confirmed worldwide.8 As the pandemic worsened, countries closed their borders. The lockdown in

India was extended multiple times to May 31.

Unexpected Developments

Toward the end of March, managers highlighted the trauma some of their team members were going

through. These team members were performing essential services and could not work from home. They

were being ostracized at their residences, and their landlords and apartment communities asked them to

leave because they saw them as potential carriers of the virus. Many of those working at the airport resided

in the surrounding villages; on the evening of March 24, while on their way home in the BIAL-provided

transportation, they saw that the roads leading to the villages were either dug up or barricaded completely,

and the village communities asked them to vacate their accommodations overnight, fearing they would be

carrying the virus into the villages. At 7:00 p.m. that evening, the leadership team had an unscheduled

meeting. The corporate affairs team, along with human resources, worked overtime to set up a dormitory

at the airport for all those who had been rendered homeless.

Engaging the Workforce

With lockdown enforced, an airport that always buzzed was suddenly silent. Unless specifically required to

be at the airport, BIAL staff were working from home. During the first couple of weeks, everyone accepted

the new normal; however, the leadership now had to keep the staff engaged in a remote environment.

Among the first things that BIAL did was to declare a mantra of “accept, adapt, and advance” to navigate

the complexity. This encouraged the staff to embrace the evolving situation and build resilience to thrive

in it. BIAL’s leadership also invested in building an innovation mindset in the team to help them think

beyond the obvious. They created an opportunity similar to the popular “shark tank” forum in which their

staff could contribute innovative and entrepreneurial ideas.

Until March 2020, a labour force of around 10,000 had been engaged in the airport expansion project. The

lockdown meant that all construction activities came to a halt. The labourers were housed in labour camps

specifically set up around the airport, and this meant the labour camps were isolated. The lockdown only

cut them off further from civilization. For this large group of people, only two things mattered—working

8 World Health Organization, Coronavirus Disease 2019 (COVID-19), Situation Report – 88, April 17, 2020, https://www.who.int/docs/default-source/coronaviruse/situation-reports/20200417-sitrep-88-covid- 191b6cccd94f8b4f219377bff55719a6ed.pdf?sfvrsn=ebe78315_6.

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hard all day and finding ways to entertain themselves in the evening. Now, suddenly there was a vacuum.

There was no work during the day, and they could not leave the labour camps for any form of entertainment.

Leaving the labourers idle could have resulted in drinking, threatening, and brawls. Although managing the

labourers took place through the contractors, BIAL had always been involved to ensure that the workers

were well taken care of and provided with proper food, sanitation, and health care. The BIAL leadership

wondered what else they could do to avoid any unwanted developments in these labour camps.

Doing Good, Being Safe

When Bengaluru Airport was commissioned as a greenfield project, the land was acquired from thousands

of farmers. These farmers gave up their homes and moved away to a new area. Marar had always reminded

his team that the BIAL staff had the opportunity to work at the airport, the airlines had the opportunity to

fly their planes there, and BIAL had been able to build the entire infrastructure because of these farmers.

“We must contribute back to their social upliftment. If we don’t keep that in mind daily, then we are doing

a big disservice in the way we operate,” Marar had maintained. He underlined the importance of enabling

the socio-economic development of the local community, and over the years BIAL had evolved a robust

corporate social responsibility (CSR) program.

The pandemic had challenged the local government to provide support and essential services at the

grassroots level. BIAL reached out to the local government and offered help managing the consequences

of the lockdown, specifically in the surrounding areas and containment zones.

Staff members shared thoughts on what BIAL could do. One suggestion was to use one of the kitchens at

the airport to serve meals to the surrounding villages and the labour camps, and soon the kitchen was serving

3,000 meals a day. Within two days of implementing community meals in the first kitchen, the other

kitchens also expressed eagerness to join, and a team of volunteers put together a plan to scale up the

program to distribute 12,500 meals a day. They called the program Namma Chethana, which in the local

language meant “our conscience.” While the kitchen staff would prepare the food twice a day, each day

they would need twenty BIAL staff to help pack the food and distribute it to the local communities.

Just when everything seemed to be coming together, department heads were expressing discomfort about

telling team members to physically attend a CSR activity every day during a lockdown. The matter arose

in the leadership team meeting in the last week of March.

Raghunath: “I don’t think it is right to go ahead with this program on such a scale. Why put our staff at risk

when the government has enforced a lockdown and advised people to stay indoors?”

First leader: “Agreed. I heard from three senior managers that they would not want to push their teams to

sign up for this.”

Second leader: “But the CSR team believes that they have support. Some people want to go ahead with it.”

Raghunath: “This is not a one-day thing. If we go ahead then we have to go all the way. If the support wanes

in a few days, then we are calling for trouble. It will hit our reputation as an organization. We would also

leave a lot of people with failed hopes.”

Third leader: “Can we guarantee the quality and hygiene of the food being distributed? We do not want

another crisis during a pandemic where people fall sick after eating.”

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After thirty minutes of debate, the leaders were as divided as they had been at the outset. What would

Marar decide?

In It Together

The leaders at BIAL were also sensing fear of job losses among the staff. News from the industry was all

over the media (see Exhibit 4). In the leadership team meeting in April 2020, members of the CXO task

force shared their thoughts.

First leader: “We have to provide our employees with a sense of security. They are asking questions.”

Second leader: “Understandable. Today’s newspaper had multiple mentions of layoffs and salary cuts.”

BIAL had always maintained an employee-first culture, and this showed in its ratings and shares on Glassdoor.9

Throughout the lockdown, the CXO task force had been at the airport every day, and on rotation they were

available to be with the staff across the shifts. This had boosted the staff’s morale and confidence that their

leaders were with them. A team of top-rated talent had been asked to present a plan—BIAL 2.0—that aimed at

driving higher productivity and strengthening engagement as the staff continued to work remotely.

First leader: “We have to do everything we can to avoid job cuts or salary reductions. Can we ensure that?”

Rao (CFO): “We are covered as of now. But we do not yet know how long this situation will persist. With

the falling revenues, we have to find savings from elsewhere. We have to drive efficiencies. That will

provide us the needed cover to not touch employee costs.”

CHRO: “We have the all-hands scheduled next week. It would be a good idea to reassure our staff then that

we will protect their salaries and jobs. That we are together in these difficult times.”

Stopping the Exodus

Like most infrastructure projects of its kind, the BIAL expansion project had labour camps that housed

migrant workers. These workers had left their rural homes in less-developed states in India and travelled to

Bengaluru in the hope of finding work and earning enough to support their families back in their villages.

BIAL engaged contractors to manage these workers for the airport expansion project.

As the lockdown extended, unrest grew among migrant workers across India. The work stoppage had made

them financially insecure. Fear of starvation overtook the fear of COVID-19, and survival became a

priority. Migrant workers gathered in huge numbers at train termini and bus stations hoping to return to

their homes in rural areas. With train and bus services suspended, their plight soon became a hotly debated

topic in the media. This was the reality at the BIAL labour camps, too. What had started as a trickle became

an exodus as more and more migrant labourers returned to their villages.

Shimmin argued in the leadership team meeting in late April 2020 that it was a bad idea to let the situation

escalate further. “We are down to about 5,000 labourers in the camps now, with more likely to leave,” he said.

First leader: “What can we do? With the lockdown continuing, we do not have an option to resume work.”

CHRO: “I agree with Shimmin; we cannot leave them idle. We will possibly lose most of them in another

month. The contractors won’t survive this. It will take us months to rebuild post lockdown.”

9 Glassdoor (website), accessed December 12, 2020, http://www.glassdoor.com.

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Shanmugam: “Can we try convincing the local authorities to allow us to resume the construction? Some of

the half-completed road work, the unfinished second runway, and the taxiways create risks for accidents

once flights resume after the lockdown.”

Raghunath: “Indeed. And look at all the dust. It spoils the beauty of the airport.”

While the leaders failed to agree on a concrete plan, the situation kept worsening. By mid-May, only around

2,000 labourers remained. Shimmin and his team had to reach out to the local authorities and make a case

for resumption of work.

STAYING INVESTED

One of the big questions the management faced concerned the future of the expansion program. At the

leadership team meeting in June 2020, Marar looked at Rao to get the CFO’s perspective. As always, Rao

was ready with his facts. He flashed a few slides on the big screen and added his insights:

This chart shows you that we have done very well in being on schedule through the project. The

cushion we had built in at the start of the year means that the stoppage of work during the lockdown

and other delays affect us by about six months. Forty per cent of the overall project costs have

already been spent; but yes, we still have 60 per cent to spend, and we need to be honest and prudent

about it. We had planned for cost savings of 10–12 per cent through the various efficiency

initiatives. We are projected at over 12 per cent. Some of you have even managed over 15 per cent

savings. This is commendable.

Revenues are down. Passenger volumes tell the story. But with the domestic flights resuming last

week, the trickle back has started. We have to build passenger confidence. That is the only way we

can ensure that we are not creating overcapacity.

Shanmugam said, “Our social media posts on contactless travel achieved through all the technology

investments are getting a lot of eyeballs and positive feedback. That should boost passenger confidence.” To

protect passengers and staff from the risk of COVID-19 transmission, the airport introduced a contactless

check-in process from parking to boarding. The aim was to reduce physical contact at the airport as much as

possible. BIAL invested in new and updated technology to enable a seamless airport journey, with emphasis

on health and safety. Marar reminded his team: “Business is not conducted through cold transactions that are

carried out on a virtual medium. You need a firm handshake. You need to look people in the eye. You need to

build confidence. You need social interactions. You need the dinners to make the deals. In the long run, these

human instincts will result in people going back to travel. People will start travelling again.”

THE CEO’S CHALLENGE

The board meeting in August 2020 was just seven weeks away. Marar had heard the views of his colleagues;

now, he had to be sure of what to ask from the board and how to pitch it to them. He wondered whether

they should continue with the expansion plan, reduce its scope, or delay it. Should he approve the Namma

Chethana initiative that had received mixed responses from stakeholders? How should they manage the

labour camps and the ostracization their staff were facing in the nearby villages and apartment

communities? Should they continue to use their reserves to pay salaries, or was it time to take more stringent

measures? These were not simple questions, but Marar had to take immediate action. The COVID-19

pandemic was surely jeopardizing their dream of making Bengaluru Airport the new gateway to India.

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EXHIBIT 1: BANGALORE INTERNATIONAL AIRPORT LIMITED LEADERSHIP TEAM

Managing Director & Chief Executive Officer:

Hari Marar

Company Secretary: Siva Kumar M T

Head, Corporate Affairs: Sreenivas V.S.M.

Chief Operating

Officer: Jayaraj

Shanmugam

Chief Commercial

Officer: Kenneth R. Guldbjerg

Chief Strategy &

Development Officer: Satyaki

Raghunath

Chief Project Officer:

John Thomas Shimmin

Chief Financial Officer: Bhaskar

Anand Rao

Chief Human Resources

Officer: Sajit T.C.

Chief Executive

Officer, Bengaluru Airport City

Ltd.: Rao

Munukutla

Chief Marketing

Officer: Shalini Rao

Chief Information

Officer: George Thomas

Fanthome

Source: Company files.

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EXHIBIT 2: WORKFORCE AT BENGALURU AIRPORT (PRE-COVID-19)

Sector Outsourced Workforce

(# of People) Regular Workforce

(# of People) Total Workforce

(# of People)

Advertisement 0 18 18

Air Catering 350 531 881

Aircraft Maintenance 4 84 88

Airlines 761 3,047 3,808

Airport Buses 0 19 19

Airport Taxi 172 86 258

Cargo 734 4,144 4,878

Commercial Services 6 225 231

Food and Beverages 24 1,011 1,035

Fuel Farm 43 99 142

Fuel Retail 82 1 83

Government Agencies (Security, Customs, Immigration, Protocol, Intelligence, etc.)

6 2,552 2,558

Ground Handling 0 1,320 1,320

Hospital 10 68 78

Hospitality 43 324 367

Hotel 118 212 330

Hotel/Cafeteria/Bakery 21 58 79

Porter Services 0 722 722

Retail 0 777 777

Services 0 22 22

Tours and Travels 0 14 14

BIAL (Airport Operation and Maintenance)

3,250 1,315 4,565

BIAL (Construction Contract)

5,450 0 5,450

TOTAL 11,074 16,649 27,723

Note: BIAL = Bangalore International Airport Limited. Source: Company files.

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EXHIBIT 3: IMPORTANT UPDATE: COVID-19 (COMMUNICATION TO BIAL GROUP, MARCH 23, 2020) Dear Colleague, All of us have been anxiously following the developing COVID-19 situation. I know how concerned each one of you must be for your own safety and that of your colleagues and families. While the rest of the world works from home and takes steps toward social distancing, all of us are among the few who have had to work from the front line and serve the nation when it needs it the most. You are true champions, and the nation is indebted to you. On behalf of the Board of Directors and the Management Team of BIAL, I would like to thank each of you for the tireless effort and resilience you have demonstrated, and your families for supporting you during these tough times. You have been unflinching in your commitment and unwavering in your resolve. Our deepest gratitude and appreciation to all of you, who make BIAL the terrific organization it is today. I would also like you to know that your efforts haven’t gone unnoticed. BLR [Bengaluru] Airport has been singled out for lavish praise on social media for our handling of the situation, the smooth processing of passengers, and the humane approach that we have demonstrated. Well done! The Steering Group continues to monitor developments on an hourly basis and has implemented some additional measures for your protection, and to prevent the outbreak and spread of this virus in our campus. Fortunately, there haven’t been any reported positive cases of COVID-19 in our campus. Crisis Response Teams To further reaffirm our commitment to your safety, we have constituted multiple groups to monitor the evolving situation. a) The COVID-19 Steering Committee, comprising the senior leadership team of BIAL. They focus on

both current and future risks to people and business. b) The COVID-19 War Group has representation from all key functions who address all requirements with

a high priority; they are an agile team empowered to take decisions, as needed. c) The Contact Tracing & Surveillance Team is made up of senior officials from BIAL and the State

Government with the objective of tracing primary and secondary contacts of the Coronavirus Positive cases in the state.

d) The Multi-Stakeholder Committee is made up of CEOs / heads of major organizations working on the campus with the objective of sharing best practices, pooling resources, and ensuring swift and effective campus-wide implementation of action plans.

All the teams rely on your support and quick response in the fight to contain this virus through multiple steps and actions. Some of the actions that have been taken are in response to the concerns and suggestions expressed in the emails we received from you. Please share your feedback and concerns freely so as to keep us on the path of continuous improvement. Screening and Sanitation Thermal screening continues for all employees at the terminal and will be extended to all other offices and visitors as soon as we receive the screening equipment. These have been unavoidably delayed due to the current lockdown situation. Terminal staff have the highest exposure, and all steps are being taken to make sure protective gear is made available. We have requested that our partners take similar precautions in their offices. Strict protocols are in place for food service outlets at the domestic terminal and these are being audited on a regular basis. Based on government directives, the curbside and quad outlets have also been closed.

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EXHIBIT 3 (CONTINUED) Some of you were concerned about cafeteria cleanliness and crowding. As a result, we have decided to suspend dining services across all locations. Employees can order food on the Eatizee app and pick it up from the locations listed in the app, ensuring that they follow social distancing guidelines. We have also ensured that cafeteria staff are checked regularly for symptoms, and that they follow the highest standards of hygiene and sanitation. Reducing Opportunity for Cross Contamination To minimize the chance of cross contamination, we have stopped all newspaper subscriptions. Glasses, jugs, and trays have been removed from all meeting rooms. We encourage employees to pick up their coffee and tea themselves and avoid gathering around the pantry areas. Business Continuity Plan We have taken precautionary measures and invoked the Business Continuity Plan to make sure work is not hampered. In this context, we have taken two critical actions: a) Several teams are working in split mode across multiple offices. b) Teams have been given the flexibility to work from home or work flexi-hours—both by rotation. I am aware this may cause temporary disruption but request your patience and support in making this work smoothly. This decision also helps us with social distancing, and, in addition, we encourage everyone to minimize face-to-face meetings and rely on calls and Microsoft Teams. Community Actions One of our employees expressed concern about overcrowding in shuttles, and in response we put in place a guideline defining the maximum number of people who can get onto a shuttle. The Multi-Stakeholder Committee—led by BIAL—will meet on a weekly basis (or more frequently, if required) to assess the situation and take appropriate campus-wide action. This gives the community a platform on which to discuss and implement relevant actions related to safety and well-being. I think it is critical that we remain calm, show solidarity and demonstrate both resolve and restraint in our fight against COVID-19. During this time, may I ask each of you to take a step further and take complete ownership of your immediate surroundings, be it sanitation and hygiene, war group needs, agility in response time, or a “make it happen” approach. Remember, “You Are BIAL.” I am confident that we will get through this challenging time and emerge stronger, both as a team and an organization. BIAL is your home, and we will do everything possible to support you during this phase. Continue writing in with your views to [email protected]. We will continue to keep you updated on developments and actions taken. Best Regards, Hari K. Marar Note: BIAL = Bangalore International Airport Limited. Source: Company files.

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EXHIBIT 4: JOB LOSSES IN THE AVIATION INDUSTRY DUE TO COVID-19

(APRIL−SEPTEMBER, 2020)

Airline Job Losses

Lufthansa 22,000

British Airways 12,000

Emirates 30,000

American Airlines 5,000

Scandinavian Airlines 5,000

EasyJet 4,500

United Airlines 3,500

Virgin Atlantic 3,150

Ryanair 3,000

Alaska Airlines 3,000

Virgin Australia 2,000

Total 93,150

Supplier Job Losses

Boeing 13,000

Airbus 10,000

Rolls-Royce 9,000

Total 32,000

Source: Created by authors using data from David Meyer, “‘Personnel Overhang’: All the Job Cuts Each Airline Has Announced So Far,” Fortune, June 11, 2020, https://fortune.com/2020/06/11/airline-layoffs-job-cuts-coronavirus-covid-19- lufthansa-british-airways-emirates-american-airlines-sas-norwegian-easyjet-united-virgin-ryanair.

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