AirAsia hirings may get a Tata touch now

After CFO Ankur Khanna's recent exit, several Tata old timers are among those shortlisted for post

Tata Sons is likely to have a bigger say in appointing the next chief financial officer (CFO) of AirAsia India. The appointment will, however, have to be cleared by the AirAsia board.

Topping the list of names being considered by Tata Sons for the post, that has fallen vacant after Ankur Khanna’s recent resignation, are Tapas Mitra and Deepak Mahendra — both known for their long-time association with the Tatas. Tata Sons selection committee is learnt to have looked at these names closely.

Tata Sons and Tony Fernandes-owned AirAsia Berhad hold 49 per cent stake each in the airline, while the remaining two per cent is held by Tata veterans S Ramadorai and R Venkataramanan.

Mitra, who is currently head (internal controls) at Larsen & Toubro, had earlier served as vice-president (finance) at Tata Advanced Systems. Tata Advanced Systems drives the holding company Tata Sons’ business of aerospace and defence. Mahendra was head of corporate finance at Tata Power. 

Khanna tendered his resignation at AirAsia India just 10 months into the job and is currently on a notice period. He was summoned by the Enforcement Directorate in connection with alleged financial irregularities in AirAsia India, according to reports.

In the past, there have been differences among the AirAsia India board members over the choice of senior level executives, a former official said. Exchange of e-mails reviewed by Business Standard shows that in 2015, Bharat Vasani, chief legal counsel of Tata Sons and a former director at the AirAsia India board, raised objections about the selection of at least two senior executives. The objection was on the ground that executives were being hired without sufficient corporate experience. 

Queries sent to Tata Sons spokesperson were directed to AirAsia India, which did not respond.

Experts say that the promoters need to focus more on selecting the right people to establish integrity among the senior level positions. “I don’t see Tatas getting more involved but re-establishing institutional integrity will be key and possible focus areas for both the promoters,” said Kapil Kaul, chief executive officer (South Asia), Centre for Asia Pacific Aviation, an aviation consultancy firm.

Since its inception in June 2014, AirAsia India has seen frequent top-level churn. In two-and-a-half years of operation in the country, the airline has had two CEOs and two chief commercial officers. Those who have been replaced include the company’s first CEO Mittu Chandilya, CFO Vijay Gopalan, commercial director Gaurav Rathore and director of flight operations Sumant Mishra. The latest to leave was CFO Ankur Khanna.