BackPMO extends Air India chairman Rohit Nandan’s term
Cabinet panel grants Nandan extension till 21 August 2015 or till a successor if appointed, whichever is earlier
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New Delhi: The Prime Minister’s office (PMO) has accepted a request by aviation minister P. Ashok Gajapathi Raju and extended the term of Air India Ltd chairman Rohit Nandan.
The appointments committee of the cabinet led by Prime Minister Narendra Modi approved an extension for Nandan until 21 August 2015, or until the appointment of a successor to him, whichever is earlier, according to an order issued by the department of personnel and training.
Raju had requested the PMO to grant a year’s extension to Nandan after a request to allow him two years more in the chairman’s post was turned down, Mint reported on 19 September. Nandan’s term expired in August and he was granted a three-month extension then by the PMO.
Nandan, a 1982 batch Indian Administrative Service (IAS) officer, is the first chairman of the state-owned airline to have completed his term since the 2007 Air India-Indian Airlines merger marred by glitches. In the four years to mid-2011, the airline saw the entry and exit of four chairmen—V. Thulasidas, Raghu Menon, Bharat Bhushan and Arvind Jadhav.
Raju’s request for an extension to Nandan was based on the fact that Air India had achieved a measure of stability after many years, had recently joined the Star Alliance, was free of labour unrest that it had been prone to in the past, and that it was difficult to find a replacement with expertise in handling an airline at short notice.
“On all parameters, we have been improving. The airline will only go upwards," Nandan said on Monday, adding that his focus will be on “profitability and customer services" in the year ahead.
An analyst said the extension for Nandan showed the government was looking at a decisive plan for the national carrier.
“Rohit Nandan’s extension is on expected lines and I welcome it," said Kapil Kaul, chief executive officer of consulting firm Capa. “I see him leading Air India till a logical decision about its future is taken. Changes in Air India are visible under his leadership though structural issues remain and are unlikely to be sorted till ownership changes"
Air India, burdened by ₹ 40,000 crore of debt, is in the midst of a ₹ 30,000 crore bailout programme aimed at restoring it to profitability.
The airline’s loss rose from ₹ 63 crore in 2003-04 to ₹ 7,100 crore in 2011-12. The loss narrowed to ₹ 5,100 crore in the fiscal year ended March.
The end of uncertainty over the chairman’s tenure also means Air India can now host the first ever Star Alliance board meeting in India in December.
Air India joined Star Alliance, the world’s biggest airline alliance, in July. It is a tradition for the newest member of the alliance to host the first board meeting after joining it.
Nearly two dozen chief executives of member-airlines, including Deutsche Lufthansa AG, Singapore Airlines Ltd, Air China Ltd, Air Canada, United Airlines Inc., Turkish Airlines and Thai Airways are expected to be part of this gathering.
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