All the Maharajas men

While the board recently axed the controversial appointment of Capt Pawan Arora as the chief operating officer (COO) of Air India Express,uncertainty continues to loom large over the second appointment of Stefan Sukumar as chief training officer of the Air India. These new entrants were at the centre of a showdown in the latest meeting of the 14-member board when independent directors and the government nominees joined hands to throw out Arora. The candidature of both Arora and Sukumar was backed by airlines five-month old expat chief operating officer Gustav Baldauf,who was given the mandate by the civil aviation ministry to draw a turnaround plan.

Sources said Baldauf is a bitter man today,having experienced first-hand a taste of working in a government sector company. The fiasco also led to a not-so-pleasant meeting between civil aviation secretary Madhavan Nambiar and Baldauf,where he was clearly told that such behaviour cannot be tolerated in a state-owned company. While Nambiar headed the team that brought in Baldauf,Arora had showered praise on Baldauf when Air India was headhunting for a COO.

The problem started two months ago,when Aroras appointment received the boards nod,even though objections were raised by a government nominee citing high remuneration package and procedures adopted in appointing him. The airline management assured that all relevant details on Aroras candidature would be placed before the board in its next meeting. However,four of five independent directors jumped the gun and rushed to the Prime Ministers Office,complained about the three controversial appointments and functioning style of airlines top management. Never before has the board of public sector unit been so polarised.

The board,claimed sources,is divided into at least four camps. The polarisation is reflected even in the seating arrangements at the meetings. One camp is led by independent directors,second by government nominees,third by functional directors. The airlines CMD Arvind Jadhav singularly represents the fourth camp.

In the past year and a half since Jadhav took over reins at the airline,the dynamics in the board have changed drastically,only to worsen. Of course,it hasnt helped that Jadhavs equation with the Rajiv Gandhi Bhawan has soured with the ministry overturning several decisions taken by the airline management,and often resorting to micro-managing the airlines affairs,a charge denied vehemently by the ministry. Battle lines in the board are drawn clearly and each is guarding his turf fiercely.

Sources present at many such stormy board meetings pointed out that hardly any decision is taken in these meetings. Decisions on most of the key issues are taken ahead of the board meeting reducing the meetings to a farce, said a top Air India executive. In such a divided house,Air Indias hopes to be able to implement a turnaround plan and pull the airline out of its current morass,seem rather fanciful.

A look at some of the key board members and behind-the-doors glimpse into Maharajas underbelly:

Arvind Jadhav,CMD: Is accused by ministry and independent directors alike of functioning in a high-handed manner and alienating employees. Of course,it doesnt help that ministry keeps a hawk eye on airlines decisions,overturning them,often leading to an embarrassment for Jadhav.

While sources conceded that he is a workhorse,they also point out he has isolated himself from most at the airline,unable to build trust in them. Jadhav is caught in a unique situation where the merger between Air India and Indian Airlines has failed on ground with employees sharply divided along those lines. Despite suggestions to de-merge the airline,the ministry is not willing to bite the bullet.  

E K Bharat Bhushan,joint secretary & financial advisor,ministry of civil aviation: A government nominee,he keeps an eye on Air Indias financials and has been a vociferous opponent of any further equity infusion by the government citing the failure of airline to deliver on some of the key performance parameters. Bhushan is known to be the most vocal of all at board meetings,and critical of managements style of functioning. Bhushan was given the additional charge of airlines CMD in April 2009,and was given to understand that he would retain the top job for at least 3-4 months. Within three days, Jadhavs name was announced for the job,which say said sources,left Bhushan bitter.

Prashant Narain Sukul,joint secretary,ministry of civil aviation: Another government nominee on the board,he believed to have a soft approach towards the airline management. He lets his senior colleague,Bhushan,do the talking at meetings.

Anup K Srivastava,director Personnel: Srivastava and Jadhav reportedly do not see eye-to- eye. Srivastava,sources claimed,springs surprises for Jadhav in board meetings and resists from discussing such issues on a one-to-one basis with Jadhav. This puts Jadhav in a bad light at board meetings,as he is taken by surprise, said another source. Srivastava is an Indian Airlines old hand,who was opposed to merger of the two state-owned airlines,and wields influence over unions which helps him in his current role to negotiate with them when need arises.

Other functional directors,Amod Sharma (SBU head – Related Business),KM Unni (SBU head – MRO),Anita Khurana (SBU head-Cargo),Vipin K Sharma (SBU head engineering,compliance & Alliance Air) and S Chandrasekhar (director Finance) mostly steer clear of controversy.

Independent Directors: Brought into the company in April 2010,senior executives in the airline said that they have slowed down the decision making process in the airline.

Anand Mahindra,vice chairman & MD,Mahindra & Mahindra Ltd:

He brought in expertise from within Mahindra group like Kotak Mahindra Banks Uday Kotak and financial consultant TNV Aiyyar to look into companys financials. Kotak was co-opted as a member of finance sub-committee. An astute businessman,he suggested that decision on wage rationalisation be deferred,calling it the last resort. Is seen as close to Civil Aviation minister Praful Patel and had emphasised at the time of joining the board that he gave his consent on Patels insistence.

F H Major,Air Chief Marshal (Retd.): While financials may not be his strong point,avionics is close to his heart. Takes a keen interest on matters related to aircraft,and was also asked to negotiate penalties with Boeing for delay in delivery of Dreamliners.

Amit Mitra,secretary general,FICCI: Mitra generally tows the ministrys line and was a vocal critic of airlines plan to launch non-stop flights to Melbourne. Is said to have prepared an-eight page report on why the route would spell disaster for Air India.

Harsh Vardhan Neotia,chairman,Ambuja Realty Development Ltd: Is said to have favoured wage rationalisation. Neotia lays emphasis on enhancing revenues from areas other than passenger revenue,like ground handling and MRO. Remains reserved during meetings.

MA Yusuffali,managing director,Emke Group: Sources point out that Kerala operations of the airline are one of the chief concerns of Yusuffali. At most of these meeting,he would highlight problems related to Southern region, said a source.