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Govt wants outsider to head AI, more heads set to roll

Hindustan Times | By, New Delhi
Aug 09, 2011 11:49 PM IST

More heads are set to roll in the top management of the ailing Air India, apart from its CMD Arvind Jadhav. Saubhadra Chatterji reports.

More heads are set to roll in the top management of the ailing Air India, apart from its CMD Arvind Jadhav.

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The Centre will look for talent outside the company to replace Jadhav as a part of its strategy to turnaround the national carrier, which is heavily dependent on government support.

"We don't want anyone from the present management to become the next CMD. The civil aviation ministry is looking for people outside the company," said a top Congress minister.

One of the reasons for scouting outside talent is that quite a few managers are likely to be replaced, and the government doesn't want to promote any of them. Also, the government views the current dismal situation of the airline as a collective failure of the management.

The civil aviation ministry is also aware that the general staff of the company may not accept anyone from the top management to be their top boss because of bitter relations between the two sides.

Even as the Centre started the process to remove Jadhav, it is likely to face flak from the opposition on Tuesday. Five opposition MPs, including Gurudas Dasgupta (CPI) and Murali Manohar Joshi (BJP), have moved a 'calling attention motion' on the running of the airline in Lok Sabha.

Sources in the UPA government said civil aviation minister Vayalar Ravi has spoken to Prime Minister Manmohan Singh, finance minister Pranab Mukherjee and more people, including opposition leaders, about his plan to overhaul the AI management. The top brass of the UPA wanted the AI management to function effectively.

It also sanctioned a package of R1,732 crore in the last meeting of the cabinet committee on economic affairs. The package contained a fresh equity infusion of R1,200 crore.

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