<p>The controversial tenure of Jadhav, who was appointed chairman and managing director of the public sector airline in May, 2009, has seen frequent employee strikes, steep increase in losses, fall in market share and irregular salary payments to staff. The senior IAS officer has been repatriated to Karnataka.<br /><br />The appointment of senior IAS officer Rohit Nandan as the new CMD is another attempt by the government to salvage the crisis-hit national carrier. <br /><br />The 1982 batch IAS officer of Uttar Pradesh cadre, Nandan assumed charge on Friday itself and promised to return the company to good times. <br /><br />Jadhav, whose ouster was demanded by the employees, especially the pilots who went on a prolonged strike recently, was given the marching orders after he failed to deliver the goods even after two years as CMD.<br /><br />The Centre has been under attack from various quarters for allowing the carrier to bleed at the cost of exchequer, despite the company having massive assets and staff strength.<br />Nandan may remain CMD until the government appoints a new chief. The Centre said it will appoint two executive directors soon. <br /><br />The move to fill the vacancies in the board comes in the backdrop of former Ficci official and present West Bengal Finance Minister Amit Mitra and Vice Chairman and MD of the Mahindra Group Anand Mahindra quitting as independent directors. <br /><br />The national carrier has suffered from crisis after crisis since 2005 when Air India and Indian Airlines were merged. Recently it failed to pay its employees salary and perks. Oil companies disrupted fuel supplies after it failed to pay dues, and allowed only cash-for-fuel after the government intervened.<br /><br />Air India was on the verge of defaulting on interest payments, and banks refused to lend further without government guarantees. Star Alliance, the global airlines grouping, refused AI membership after the carrier had invested three years and Rs 70 crore to meet entry obligations.<br /><br />The company has accumulated losses around Rs 20,000 crore till and its debt burden was around Rs 40,000 crore. For the past three years, the government has infused Rs 3,200 crore equity into AI. The airline has sought an annual support of almost Rs 5,000 crore-Rs 6,000 crore to meet liabilities like payment for 111 new aircraft. A group of ministers is vetting its turnaround plan.<br /><br /></p>
<p>The controversial tenure of Jadhav, who was appointed chairman and managing director of the public sector airline in May, 2009, has seen frequent employee strikes, steep increase in losses, fall in market share and irregular salary payments to staff. The senior IAS officer has been repatriated to Karnataka.<br /><br />The appointment of senior IAS officer Rohit Nandan as the new CMD is another attempt by the government to salvage the crisis-hit national carrier. <br /><br />The 1982 batch IAS officer of Uttar Pradesh cadre, Nandan assumed charge on Friday itself and promised to return the company to good times. <br /><br />Jadhav, whose ouster was demanded by the employees, especially the pilots who went on a prolonged strike recently, was given the marching orders after he failed to deliver the goods even after two years as CMD.<br /><br />The Centre has been under attack from various quarters for allowing the carrier to bleed at the cost of exchequer, despite the company having massive assets and staff strength.<br />Nandan may remain CMD until the government appoints a new chief. The Centre said it will appoint two executive directors soon. <br /><br />The move to fill the vacancies in the board comes in the backdrop of former Ficci official and present West Bengal Finance Minister Amit Mitra and Vice Chairman and MD of the Mahindra Group Anand Mahindra quitting as independent directors. <br /><br />The national carrier has suffered from crisis after crisis since 2005 when Air India and Indian Airlines were merged. Recently it failed to pay its employees salary and perks. Oil companies disrupted fuel supplies after it failed to pay dues, and allowed only cash-for-fuel after the government intervened.<br /><br />Air India was on the verge of defaulting on interest payments, and banks refused to lend further without government guarantees. Star Alliance, the global airlines grouping, refused AI membership after the carrier had invested three years and Rs 70 crore to meet entry obligations.<br /><br />The company has accumulated losses around Rs 20,000 crore till and its debt burden was around Rs 40,000 crore. For the past three years, the government has infused Rs 3,200 crore equity into AI. The airline has sought an annual support of almost Rs 5,000 crore-Rs 6,000 crore to meet liabilities like payment for 111 new aircraft. A group of ministers is vetting its turnaround plan.<br /><br /></p>
