Aviation Minister intends to revamp AI

Civil aviation ministry has decided to revamp the management after the dismal financial performance of the carrier.

"You will see in the next 30 days a major change in the top management in Air India.

“You are going to see a major change in the board. Some heads are going to roll. We are going to bring high quality people of great integrity and people with a proven track record in business," Civil Aviation Minister Praful Patel said here.

AI’s bleak performance
AI’s losses mounted to Rs. 5,000 crore in 2008-09. 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 aircrafts.

AI had also delayed last month’s salary payments to its staff due to monetary shortage.

Bringing relief to about 30,000 employees, the airline announced that its contractual staff would be given salaries by July 10, while others would get it by July 14.

Prominent people approached
Reportedly, government has also sought the help of industrialist Ratan Tata to clear the financial mess of AI.

Ironically enough, Air India (AI) was founded by JRD Tata in 1932 and now his predecessor is sought to set things in place.

The other names being considered for inclusion in the AI Board include National Knowledge Commission chairman, Sam Pitroda, Infosys mentor and chairman, N R Narayana Murthy and TCS CMD S Ramadorai.

Official sources said that the seven independent directors who are to be inducted would be of international repute.

"The board will be headed by someone of the eminence of a luminary like Ratan Tata and will be set up within a month," Patel said.

It is anticipated that Ratan Tata, chairman of the Tata Group, has agreed in principle and the government hopes that his leadership will regulate the present financial crunch.

Apart from revamping the board, the government would also go in for "partial disinvestment" of the state-owned carrier in the near future.