Why Air India's turnaround is witnessing turbulence

Independent board of directors and executive management in blame game

Even as the rift between those responsible for the claimed turnaround of the national carrier Air India is widening by the day, allegations are flying high and thick between the independent board of directors and the executive management staff.



The latest feud between the two camps regarding the appointment of some people with 'dubious credentials' as part of the so-called turnaround is turning out to be an interesting contest between the two groups. Documents pertaining to these appointments, which are in the possession of MiD DAY, establish that both the camps knew well how and who are being taken on board.

The fresh controversy surrounds the appointment of Captain Pawan Arora as COO, Air India Charters Limited (AICL), Kamaljeet Rattan as CCO, National Aviation Company Limited (NACIL) and Captain Stephen Sukumar as COT, NACIL.

The documents suggest Chief Operating Officer (COO-NACIL) Gustav Baldauf was appointed by a committee headed by Aviation Secretary MM Nambiar. The posts of Arora, Rattan and Sukumar were sanctioned after a presentation before the independent directors and Ministry of Civil Aviation.
The appointments were later cleared by the HR committee and Air India board.

The documents, containing minutes of the entire appointment procedure, suggest that that Chief Managing Director, NACIL, Arvind Jadhav, who has been facing the flak for appointment of people with "dubious credentials", might not be entirely responsible for it.u00a0 While Jadhav is facing scrutiny for all these new appointments, minutes of the appointment procedure said: "A panel consisting of secretary civil aviation, CMD of NACIL apart from Mr Sajjan Jindal, vice-chairman and MD, Jindal Steel and Mr Uday Kotak, executive vice-chairman and MD, Kotak Mahindra Bank Ltd was formed to select the suitable candidate to the post of Chief Operating Officer-NACIL (Gustav Baldauf)." Jadhav only negotiated the salary with Captain Gustav, for which the panel had empowered him.

The appointments of Arora, Rattan and Sukumar were done by a two-member panel headed by Captain Gustav Baldauf. The panel recommended these three officials to Air India CMD.

The new appointments were indeed recommended during a presentation by Jadhav and Captain Gustav before the Minister for Civil Aviation Praful Patel, Aviation Secretary MM Nambiar, Joint Secretary and Financial Advisor Bharat Bhushan and the 'independent directors' of the board of NACIL on June 28, 2010.

The appointments were cited as part of the strategy and initiatives behind the turnaround plan of the national carrier. Later, a panel comprising Captain Gustav Baldauf and V Srikrishnan, Executive Director (HQ) was appointed to interview the eligible candidates .