AI top brass strife leads to greater chaos

New Delhi: Internal bickering among Air India 's (AI) top brass is threatening to unravel the financial turnaround plan put in place to help the ailing national carrier to step out of the red. What's more, the independent directors appointed on the board of the airline last year to help make its turnaround plan work are dissatisfied with the airline's management.
On Monday, Mahindra & Mahindra (M&M) vice chairman Anand Mahindra offered to resign from the board of the National Aviation Company India Ltd (Nacil) that operates Air India citing conflict of interest. In a letter to the civil aviation minister Vayalar Ravi, he has sought permission to step down from the board of Nacil.
In March last year, Mahindra along with Air Chief Marshal Fali H. Major (retd), FICCI secretary general, Amit Mitra and Ambuja Realty Group chairman Harsh Neotia were inducted as independent directors on the NACIL board to help the airline in its turnaround plan.
Fear is now looming large among the airline's top officials as the government has also indicated that some heads may soon roll in the airline, which has a debt burden of over Rs 40,000 crore.
According to civil aviation ministry officials, the current top management in the airline is unable to infuse confidence in the rank and file of the airline.
This leaves little scope for an effective turnaround. He said that the government cannot continue offering financial help for long.
22/02/11 Sanjay Singh/Business Today

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Categories: Air India Feb 2011