Manipulated Appointment of Air India CMD: A Blatant Violation of Norms

Strategic Insights -

A close scrutiny of the minutes for appointment of the CMD, Air India, has revealed a shocking and appalling subversion of all norms of appointment by the Prime Minister's office. In 2008, the Search Committee, presided over by K.M. Chandrasekhar, Cabinet Secretary, and attended by senior officials, had interviewed seven candidates and declined the appointment of Arvind Jadhav due to lack of domain experience in civil aviation. However, in 2009, the same committee reconsidered Jadhav's candidature and recommended his appointment, despite his credentials being doubtful. The Prime Minister's office, headed by the Prime Minister and Home Minister, deliberately chose to manipulate the appointment process to accommodate Jadhav, who had "NIL" domain experience in civil aviation.

Key Takeaways:

  • The appointment of Arvind Jadhav as CMD, Air India, was manipulated by the Prime Minister's office, subverting all norms of appointment.
  • The Search Committee had initially rejected Jadhav's candidature in 2008 due to lack of domain experience.
  • Despite this, Jadhav's name reappeared in the panel of candidates in 2009, and he was ultimately appointed as CMD, Air India.
  • The decision to appoint Jadhav was taken by the ACC, headed by the Prime Minister, despite his credentials being doubtful.
  • The tenure of Raghu Menon, the previous CMD, was cut short to accommodate Jadhav.
  • Jadhav's appointment has resulted in Air India accumulating a loss of `18,000 crores, debt of `41,000 Crore, and working capital loan of `21,000.
  • The Prime Minister's office deliberately chose to ignore the fact that two senior-most members, K.M. Chandrasekhar and T.K.A. Nair, had rejected Jadhav's candidature in 2008.

Statistics:

  • Air India has accumulated a loss of `18,000 crores under the tenure of Arvind Jadhav.
  • The airline's debt stands at `41,000 Crore.
  • The working capital loan with oil companies is `21,000 Crore.
  • Air India owes wages to employees totaling `3,000 crores.
  • The airline owes AAI and other airport operators `1,500 crores.
  • Sundry dues owed to the airline total `2,000 crores.
  • The total financial liability of Air India is `74,000 Crore.

Sources:

  • Annexure-AA: Minutes of the Search Committee meetings held on 6th March 2008 and 24th March 2008.
  • Annexure-BB: Minutes of the Search Committee meeting held on 24th April 2009.
  • Annexure-CC: Information filed under RTI in 2009.