Air India plans to revamp management in 30 days

MUMBAI: The aviation ministry is planning a major revamp of the national carrier Air India’s management, apart from setting a deadline of two years to end its financial mess. The civil aviation minister Praful Patel said on Tuesday in New Delhi that Air India’s top management will undergo a revamp in the next 30 days. “Some heads are going to roll. We are going to bring people of great integrity and those with a proven track record in business,” he added.

Going forward, it is gathered the government would go in for partial disinvestment of the state-owned carrier.

As a part of the exercise, it is learnt that directors who have been with the company for a while will move on, while a professional chief operating officer (COO) will be appointed under the chairman and managing director Arvind Jadhav. At least seven independent directors, who are internationally reputed, would be inducted on the board.

Meanwhile, on Friday, the Air India management will pay salaries to employees who earn less than Rs 10,000. Employees who earn more than Rs 10,000 will receive their salaries next. Air India is in the midst of a financial crisis after having incurred a loss of Rs 4,000 crore last fiscal.

Air India, which is the operating brand name for National Aviation Company of India (Nacil), was formed after the merger of Indian Airlines

and Air India in August 2007. Its borrowings have more than doubled to Rs 15,241 crore in June 2009, against only Rs 6,550 crore in November 2007, largely on account of borrowings for the purchase of new aircraft. Air India has ordered 111 new aircraft, and has already taken deliveries for 49 of them at a cost of over Rs 14,000 crore. The total number of aircraft with Air India — which includes owned and leased — is 155.