Four AI directors complain to PMO
Strong complaints against the style of functioning of the Air India management surfaced at a meeting on Monday that four independent directors on the board of the state-owned carrier had with the principal secretary to the Prime Minister. Some of the independent directors complained to the Prime Minister’s Office (PMO) that their advice
— on the financial turnaround of the airline — is being repeatedly ignored by the Air India management. The PMO was also told that this is one of the factors why the financial turnaround of the airline is being delayed. It was also conveyed to the PMO that advice relating to various issues including that of merger (of erstwhile Air India and Indian Airlines) was being ignored. This was confirmed by top sources to this newspaper late on Monday evening.
The four independent directors — industrialists Anand Mahindra and Harsh Neotia, former IAF chief Air Chief Marshal F.H. Major(Retd.) and Ficci general secretary Amit Mitra met T.K.A. Nair, the principal secretary to the Prime Minister.
At the meeting, some of the independent directors blasted the style of functioning of Air India CMD Arvind Jadhav and wondered what the purpose of appointment of independent directors was, when advice given by some of them was being ignored.
Questions were also raised at the meeting about the recent appointment of Capt. Pavan Arora as the Chief Operating Officer of Air India Express. There has been a lot of criticism recently from some quarters on the high salaries paid to persons recently appointed at top positions in the airline and also the manner of appointment of some of them.
Cash-strapped Air India is depending heavily on the government for infusion of equity to rescue it from its precarious financial position. Air India has been recording financial losses of more than Rs 5,000 crore each in the past two financial years.
When contacted, sources in Air India however said the airline is being run with fiscal prudence and said all recent appointments were made in a transparent manner. Just recently, employees of Air India had warned the management against any delays in payment of a section of the wages.
Post new comment