Air India set for major revamp
Air India’s controversial chairman and managing director Arvind Jadhav is being dumped as the airline struggles to overcome crippling debts and operational issues.
Prime Minister Manmohan Singh says a new regime will be in place by next Monday.
A turnaround plan prepared for Air India indicates the airline will require enormous investment over the next decade as well as 130 planes in addition to the 110 already ordered.
According to analysts, the current management was unable to arrest the airline’s collapse due to financial stress caused by orders for 110 planes, the ill-thought merger of AI and Indian Airlines and serious mismanagement issues.
Air India is seen as one of the toughest public sector jobs in India, since it requires managing virtually six different companies – the airline, AI Express, Alliance Air, Hotel Corporation of India and allied functions of ground handling and MRO.
The Economic Times of India said, “The sorry plight of state-owned carrier Air India is a telling commentary on how a combination of political interference and mismanagement can run the best of public sector companies to seed.â€
Last week the Star Alliance network and Air India suspended the carrier’s integration with the global airline alliance as India has not met the minimum membership conditions.
Ian Jarrett
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