Rajiv Bansal is the new Air India chief
NEW DELHI : In a day of dramatic developments, Rajiv Bansal has replaced Ashwani Lohani as the chairman and managing director (CMD) of Air India after the latter was appointed chairman of the Railway Board.
His tenure for three months is likely to be extended.
Bansal, a 1988-batch IAS officer of Nagaland cadre, is currently additional secretary and financial advisor in the ministry of petroleum and natural gas. His new job as the Air India CMD is an additional charge.
Bansal has served at various positions including stints at ministry of heavy industries, and ministry of electronics and information technology, but it is his stint as director in the ministry of civil aviation that will come as most handy.
For Air India, the issue of disinvesting government’s stake to bring in a strategic investor is the top priority.
With a debt of ₹50,000 crore, Air India has been in the red for years. “The CMD’s position is of paramount importance as he has to manage the daily operations of an airline that has been hand-to-mouth for years,” said a government official, requesting anonymity.
It was only recently that Air India failed timely disbursement of July salaries.
Air India, which is part of the 28-member international airlines group, Star Alliance, has 35 destinations in its overseas network across the US, Europe, Southeast Asia, Australia, and the Gulf. The national carrier also has plans to add at least 7 more international destinations this year, including Copenhagen, Tel Aviv and Nairobi.
Lohani often referred to himself, leaves Air India with slightly better financials since he took the corner office in 2015. In 2016-17, Lohani managed to steer the airline towards a 10% increase in revenue and a 5% trimming of losses. But as Bansal takes over, Air India’s steady loss of market share to private players will take centrestage.