After Mahindra,AI Board may lose two more independent directors

Harsh Neotia and Amit Mitra likely to meet aviation minister to discuss the issue soon.

Following Anand Mahindras offer to resign from the Air India Board,two more independent directors Ambuja Realty chairman Harsh Neotia and Ficci general secretary Amit Mitra are likely to follow the suit,official sources said. These high-profile appointments in March last year were part of the loss-making airlines turnaround plan.

In fact,Neotia and Mitra are likely to meet the new civil aviation minister Vayalar Ravi in a couple of days to discuss the same. While Neotia has often expressed his unhappiness over the functioning of the Board,Mitras proximity to Trinamool Congress leader Mamata Banerjee is often cited as his reason to quit,as he may be involved with the upcoming assembly elections in West Bengal. At the same time,a former civil aviation secretary may be inducted on the Board,sources familiar with the development,said.

Mahindra,in a letter to the civil aviation minister,had offered to resign citing conflict of interest.

The Indian Express had,on January 6 ,first reported the likelihood of Mahindra resigning from Board on account of conflict of interest. His (Mahindra) reasoning for resignation appears to be very weak,as the company couldnt have developed conflict of interest within a few days, said an official.

If accepted,it could also lead to exit of Kotak Mahindra Banks Uday Kotak from the finance committee of the Board,who was brought in by Mahindra. Mahindras name for the job was recommended by former civil aviation minister Praful Patel. Sources told The Indian Express that these three were opposed to AI chairman and managing director Arvind Jadhavs style of functioning.

In November last year,chinks in the Board were exposed when independent directors including former Air Chief Marshal Fali Major and Emke Groups Yusuffali complained about the management to the Prime Ministers Office.

The management,on its part,opposed the micro-management of the airline by the independent directors and their meddling in the day-to-day affairs. Independent directors had opposed Air Indias plan to fly to Melbourne and big-ticket appointments. Since then,at least one of those Air India Express chief operating officer Pawan Arora has been nixed,while chief training officer Stefan Sukumar has himself offered to resign.

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In the last couple of months,Air Indias has been facing serious financial constraints,unable to pay salaries on time,in addition to losing its number three domestic market position to a new kid on the block,IndiGo.