Ajit Singh headhunts for unit CEOs

Civil Aviation Minister Ajit Singh is set to consult senior Airbus and Boeing executives to identify executives to head Air India’s maintenance, repair  and overhaul (MRO) unit.

Last year, the government had approved hiving off Air India’s engineering unit and grounding handling department into separate segments. However, the move led to controversy, with employee unions protesting against it.

Union members refused to accept transfer orders and unions at the engineering unit unions challenged the move, filing a public interest suit. However, in April, the high court here had dismissed the petition and gave the airline the go-ahead to set up the MRO unit.

“We need a dynamic individual to be in charge of marketing and securing business for the MRO. Air India's captive business will not be sufficient,” said a ministry official.

Ajit Singh, in Paris this week, is expected to meet executives from the two aircraft makers and seek help in finding candidates for the posts. Vipin Sharma and K M Unni, two Air India board members in charge of the MRO unit, are accompanying the minister.

This is not the first time the airline is seeking an outsider for top positions in the airline. In 2010, Air India had hired Gustav Baldauf, an Austrian, as chief operating officer. However, a year later, he was forced to quit.

Securing a chief executive could be one of the many reforms to hastening the development of Air India’s MRO business. The airline has an engineering set-up in Mumbai and is developing overhaul units in Nagpur and Thiruvanathapuram.

Air India can certify or conduct repairs on engines and has regulatory approval for engine works. However, to carry out major maintenance work on aircraft, it is yet to secure approvals from the European Aviation Safety Agency (EASA) and the US Federal Aviation Administration (FAA).

“Approvals from EASA and FAA would be necessary to carry out third-party maintenance work, especially for foreign airlines. To service any US registered aircraft, an FAA approval would be required,” said an official.

It is learnt though Air India has applied for the regulatory approvals, it has been unable to fulfill the requirements yet.

“Currently, a separate company has been set up. But it is yet to take up any outside business,” the official added.

The airline’s low-cost arm, Air India Express, has faced operational woes due to a shortage of pilots. It has lost out to rivals that operate aircraft with higher capacities.

“Air India Express has been run as a subsidiary of Air India. It never had a chief executive officer; it was always headed by a chief operating officer who enjoyed no real authority. Also, most of the employees in that airline are on deputation from Air India,” said another official.