Indian Aviation News
Recent top hires in Air India may be kept in abeyance
by Bipin Shah Self Employed
Bipin Shah 
Self Employed
Nominees of the government on the board of state-owned Air India are likely to push for keeping the big-ticket appointment of Pawan Arora as Air India Express chief in abeyance in the airline's board meeting on November 18. The civil aviation ministry has two nominees on the board which has a strength of 14, including five independent directors.
Government sources indicated that along with Arora, other two appointments of Stephan Sukumar as chief training officer and Kamaljit Rattan as chief communication officer would also be discussed. These three appointments, which together cost the company over Rs 3.5 crore a year, have been questioned not just by the ministry, but also the independent directors.
While Arora and Sukumar took charge a month ago, Rattan joined less than a week ago. ?We are exploring legal options on the validity of these appointments as the necessary approvals from the government have not come in,? said a source. While Air India CMD Arvind Jadhav has earlier said that the candidature of Arora and Sukumar was recommended by the airline?s chief operations officer, Gustav Baldauf, he himself did not raise any objections.
Both Arora and Sukumar were Baldauf?s colleagues at rival Jet Airways. Baldauf was appointed as COO in May this year. In the board meeting that cleared these three appointments, additional secretary and financial advisor in the civil aviation ministry, EK Bharat Bhushan, also a government nominee on Air India board, had asked if the company had looked within the ranks for these positions. He also raised objections on their compensation levels. The board had earlier nixed the two positions of chief strategy officer and chief technology officer, which were proposed by CMD Arvind Jadhav.
While independent directors did not raise any objections to the three appointments at the board meeting, they later complained about it in a meeting with senior officials at the Prime Minister?s Office. ?They pointed out that these appointments look out of place at a time when Air India is attempting wage rationalisation. They said these appointments bring down the morale of the employees,? said a source.
Nov 11th 2010 21:29
Self Employed
Nominees of the government on the board of state-owned Air India are likely to push for keeping the big-ticket appointment of Pawan Arora as Air India Express chief in abeyance in the airline's board meeting on November 18. The civil aviation ministry has two nominees on the board which has a strength of 14, including five independent directors.
Government sources indicated that along with Arora, other two appointments of Stephan Sukumar as chief training officer and Kamaljit Rattan as chief communication officer would also be discussed. These three appointments, which together cost the company over Rs 3.5 crore a year, have been questioned not just by the ministry, but also the independent directors.
While Arora and Sukumar took charge a month ago, Rattan joined less than a week ago. ?We are exploring legal options on the validity of these appointments as the necessary approvals from the government have not come in,? said a source. While Air India CMD Arvind Jadhav has earlier said that the candidature of Arora and Sukumar was recommended by the airline?s chief operations officer, Gustav Baldauf, he himself did not raise any objections.
Both Arora and Sukumar were Baldauf?s colleagues at rival Jet Airways. Baldauf was appointed as COO in May this year. In the board meeting that cleared these three appointments, additional secretary and financial advisor in the civil aviation ministry, EK Bharat Bhushan, also a government nominee on Air India board, had asked if the company had looked within the ranks for these positions. He also raised objections on their compensation levels. The board had earlier nixed the two positions of chief strategy officer and chief technology officer, which were proposed by CMD Arvind Jadhav.
While independent directors did not raise any objections to the three appointments at the board meeting, they later complained about it in a meeting with senior officials at the Prime Minister?s Office. ?They pointed out that these appointments look out of place at a time when Air India is attempting wage rationalisation. They said these appointments bring down the morale of the employees,? said a source.
Nov 11th 2010 21:29
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