New Delhi: It has perhaps been the most dramatic 30 hours in the life of 76-year-old Air India. At 12 noon on Friday, the cabinet secretary held a meeting to find a new head for the airline as the government decided to replace incumbent CMD Raghu Menon.
At 6 pm, financial advisor in aviation ministry, E K Bharat Bhushan, was given additional charge of CMD. Menon, meanwhile, had already been informed about his removal on Thursday afternoon.
Menon has extended his leave till mid-May from May 3 as the government has set up a select committee to find his successor. In a hurry, an interim replacement was found for Menon as the full-time successor may not be found in the remaining tenure of this government till May 16.
While the reason for replacing Menon, a strictly-bythe-book bureaucrat, will be known in coming days, the latest provocation seems to the JV Air India was forming with Singapore Airport Terminal Services (SATS) to handle ground handling at airports. After the government clearance for this JV came, dispute arose on three main points.
According to sources, SATS reportedly told AI that its subsidiary would be forming the JV with the airline. Then SATS also reportedly said that it would charge a management fee for providing expertise and also AI would be charged cost plus 20%. Menon strongly objected to these three points and wrote to the ministry which was seemingly in favour of the JV.
The ministry’s handling of the change has come as a surprise. Last year the government had called application for this top post and at that time Menon had applied and then withdrawn from the race. Despite that, he was handpicked for the job. And now, the ministry has got rid of him without waiting for him to return from leave.
According to sources, the select committee has to find some suitable names and then the appointment committee of cabinet (ACC) has to put the mark of approval on the final choice. However, realising that doing background checks of shortlisted people and then getting the PM’s approval by May 16 could have been difficult, Menon was eased out immediately.
The top-level change in Air India is coming at a time when the airline is in the process of making its case before the government for additional equity infusion of Rs 1,231 crore and a soft loan of Rs 2,750 crore, primarily for acquisition of 111 aircraft from Boeing and Airbus
Raghu Menon
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