Centre dumps Jadhav, Rohit Nandan assumes charge as Air India CMD
12 August 2011
New Delhi: The Centre on Thursday has initiated a major revamp in the management of state-owned carrier, Air India, and reports suggest it may have asked chairman-cum-managing director, Arvind Jadhav, to quit his position. Reports suggest that Rohit Nandan, joint secretary in the ministry of civil aviation, may have been asked to assume charge in his place.
Nandan is an IAS officer of the UP cadre and has joined the ministry last year.
According to government sources, Nandan may be asked to undertake a revamp of the cash-strapped carrier under the supervision of secretary, civil aviation, Nasim Zaidi.
The move comes a day after prime minister Manmohan Singh met civil aviation minister Vayalar Ravi and secretary Zaidi and instructed them to undertake a complete overhaul of the airline's management.
Jadhav, a Karnataka cadre IAS officer, had taken over as CMD in May 2009 for a term of three years, which expires next year in May. In his tenure he has faced three major strikes by staff. His most recent failure has been failing to get the airline to join the Star Alliance.
Badly-struggling Air India's losses are estimated at Rs600 crore every month.
Government sources indicate that Nandan is likely to be assisted by two deputy managing directors (DMDs), who would be appointed soon. A panel of eminent persons, who would act as independent directors, will also be appointed soon, the sources said.
The Group of Ministers (GoM), headed by finance minister Pranab Mukherjee, will meet on 17 August and is likely to approve its restructuring plan and also clear additional funds for the ailing carrier.