Patel to meet AI independent directors before board meet

Ahead of a crucial meeting of the Air India board tomorrow, Civil Aviation Minister Praful Patel is likely to meet the airline's independent directors.

"Air India board meeting scheduled for 1500 hours has now been deferred to 1700 hours as the Minister has called a meeting of the independent directors on the same day," sources told PTI here.

Just three days ago, Patel had a thorough scrutiny of steps taken by AI management to restructure the national carrier. His meeting with top airline officials came weeks after the government decided to infuse additional equity of Rs 1,200 crore in Air India.

Besides approving the presentations on its financial performance, its turnaround plan and steps taken to cut costs, the meeting is expected to discuss the contentious issue of wage rationalisation of over 26,000 employees.

The meeting is also likely to take up the issue of sacking of Air India Express Chief Operating Officer Capt Pawan Arora.

Although the board at a meeting on November 18 had recommended his sacking, he continues in the hot seat till date. There are reports that Air India CMD Arvind Jadhav and the independent directors are at variance on the issue of Arora continuing in the post despite the board's decision.

Officials, requesting anonymity, said a section of the management felt that Arora should be given time to complete his probation period of 6 months.

There was also an argument that the performance of Air India Express has been on an upward curve ever since he joined the carrier in October last and that for these reasons Arora should be allowed to retain his job.

In November, independent directors - Anand Mahindra, Fali Homi Major, Harshavardhan Neotia and Amit Mitra - had met T K A Nair, Principal Secretary to the Prime Minister, on the status of the national carrier including the controversial appointments made at the top level like that of Arora.

Meanwhile, Air India has again issued an advertisement for a Chief Strategy Officer in the company, three months after the Board put on hold a proposal to appoint former IBM executive Karan Khara to the post, following reported opposition by an independent director.

Much before Khara applied for this job, he had been advising Jadhav on the turnaround plan for airline and assisting in the meetings of the airline's Strategy Committee.

Sources said the financial restructuring plan prepared by consultancy firm Deloitte Touche Tohmatsu India would also be deliberated upon at the meeting, which comes ahead of presentations the management would make before the Finance Ministry and the Board for Reconstruction of Public Sector Enterprises (BRPSE) in the near future.