Friday, March 4, 2011

Air India plans to rejig top management structure


MUMBAI/NEW DELHI: Air India plans to rebuild its top management team as three high-profile executives, including its expat chief operating officer Gustav Baldauf, called it a day following differences with the civil aviation ministry. 

The airline's chairman and managing director Arvind Jadhav, who faces the flak for bringing executives from outside on exorbitant salaries, will make a presentation on the new management structure at the forthcoming board meeting. The airline's board is slated to meet on March 15. 

"The CMD is expected to present his plan on what the new management structure should be in the forthcoming board meeting. However, changing management structure at the top won't make any difference unless the employees cooperate," said a top civil aviation ministry official. 

Though recent resignations have raised questions about Jadav's ability to achieve a turnaround, he has the support of the new civil aviation minister Vyalar Ravi 

"I'm happy and satisfied with Arvind Jadhav's performance and have no problems with him," said Mr Ravi. Jadva's term saw Air India slipping to the fourth position in terms of domestic market share. 

Jadav, however, will have to convince the board if he wants to retain the post of COO for Air India and its low-cost arm Air India Express. The airline's CMD will take a conservative approach this time, according to aviation industry officials. 

"There was no framework of job requirement or no definite role and accountability for the selections that were made for people who were got from outside and made as Air India honchos," said a senior Air India official who had opposed the selection process. 

The chief operating officer of Air India Express, Pawan Arora, was sacked last month and Air India's chief training officer, Stephan Sukumar, resigned last week. 

Civil aviation minister feels it is tough to induct people at the top. "The question of inducting new people at the top is not easy and I can't talk about these plans in public like this. I have to consult my ministry and experts before deciding on that," Ravi added. 

The board meeting is also likely to approve the turnaround plan, which is being finalized by consultancy firms Deloitte and SBI Caps. Air India will get an equity support of 1200 crore from the government. It will also restructure its debt ( 40,000 crore) and is likely to go aggressive to regain market share.




By
Neha Jain



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