India's Ministry of Civil Aviation announced (12-Aug-2011) the appointment of Rohit Nandan, Joint Secretary of the Ministry of Civil Aviation, as Air India Chairman and MD for a period of three years. He replaces Arvind Jadhav, who was appointed to the position in May-2009 (Press Trust of India/Bloomberg/AFP/IANS/Economic Times/DHNS/Telegraph India/Reuters/Dow Jones/Live Mint, 12/13/15-Aug-2011). Mr Jadhav's term as CMD was due to expire in May-2012. The government provided no official reason for Mr Jadhav's replacement although the former CMD has faced criticism about his management of the carrier. Mr Jadhav's tenure has seen a number of employee strikes and irregular salary payments, a steep increase in losses following the 2007 merger of Air India and Indian Airlines, high debt costs, and a decline in market share. Mr Nandan stated boosting employee morale and ensuring a turnaround in the carrier's financial position are his main tasks. Three new directors will reportedly be inducted to Air India Board covering the areas of personnel, marketing and finance. "A full-fledged board will come and executive directors from the industry will also come. So everything will be streamlined," Civil Aviation Minister Vayalar Ravi said, adding, "Definitely we will do everything possible, look into every aspect... And we will make the Air India revive as fast as I can". [more]
Air India: “My challenge would be bringing back smiles to the face of Air India employees and (restoring the) financial health of Air India. This change of management will be done through a participative and consultative process. I do not want to comment on anything about what happened in the past. I have taken up this challenge with a positive outlook,” Rohit Nandan, Chairman and MD. Source: Live Mint, 15-Aug-2011.
India Government: “The new chairman will bring new energy to the entire organization that will boost the morale of employees and motivate them to work as a team. Certainly, he will try to reduce losses,” Nasim Zaidi, secretary, ministry of civil aviation. Source: Live Mint, 15-Aug-2011.