Arvind Jhadav is being removed as Air India's Chairman and Managing Director with the government deciding to split the post into two and appoint Civil Aviation Secretary Nasim Zaidi as the chairman.
Rohit Nandan, a Joint Secretary in the Civil Aviation Ministry, will be appointed the Managing Director of the airline to handle day-to-day functions.
Orders to this effect are expected to be issued today, official sources said.
However, the appointment of Nandan and Zaidi is going to be an interim arrangement till the government gets suitable candidates for the two posts.
The government is also likely to soon fill up two vacancies in the Air India board caused by the resignations of Amit Mitra and Anand Mahindra, who quit as independent directors in the board. Earlier there was speculation that Nandan will be associated with two deputy MDs. However, sources said they are yet to take a decision on these appointments.
55-year-old Jadhav has been facing criticism for the grave financial crisis facing Air India.
A 1978-batch IAS officer, Jadhav took over as CMD of the National Aviation Corporation of India Limited (NACIL) on May 4, 2009. He is empanelled as a Secretary to the government. Jadhav has been under attack from sections of the employees like pilots and political parties. His tenure so far has experienced three major strikes by pilots and other employees.
The focus of these attacks has been the massive losses and debt burden of the national carrier and delayed payment of staff salaries and allowances.