E K Bharat Bhushan, financial advisor in aviation ministry, has been given the additional charge of chairman and managing director (CMD) in place of Raghu Menon, who has proceeded on leave ahead of his retirement.

Air India is hunting for a new person to steer the country's flag ship carrier out of the current economic turbulence.

A high-level committee, headed by cabinet secretary K M Chandrasekhar, yesterday shortlisted a few names for the top post in the National Aviation Company of India Limited (NACIL), the holding company of the national carrier, reports said.

The front-runner for the CMD's post is reported to be Arvind Jadhav, a 1978 batch IAS officer who is now principal secretary to the Karnataka government.

Another bureaucrat in the race is Arvind Mayaram, also a 1978 batch officer of Rajasthan cadre who is financial advisor and additional secretary in the union rural development ministry.

The meeting, which was also attended by civil aviation secretary M Madhavan Nambiar, also shortlisted about 10 people for the post of chairman of the newly-established Airports Economic Regulatory Authority (AERA).

A full-time CMD will be appointed by the new government, after it takes over in June.

Menon, a 1974 batch IAS officer , was appointed CMD of Air India in April 2008.  His term of appointment is till 2010. However, it is learnt that the aviation ministry is not keen to continue with Menon as the carrier has been reporting huge losses - to the tune of about Rs2,000 crore.

The airline is planning to buy additional 100 aircraft to improve its fleet, though the plan has been not yet finalised because of shortage of funds.

It has asked the government for additional equity infusion of Rs1,231 crore and a soft loan of Rs2,750 crore, to restructure its operations.

The process of merger of Air India and the erstwhile Indian Airlines is yet to be consolidated, with formalities on various counts still remaining to be completed.

Meanwhile, it is reported that Menon and former AAI chief K Ramalingam, along with former CMD Tulsidas are in the race for the AERA chairman's post.

The newly formed AERA is expected to regulate standards, tariff and adjudicate disputes. It would also encourage investment in airport facilities to encourage operation of efficient, economic and viable airports.