AI chief to quit ahead of term end: Sources

Air India chairman and managing director Arvind Jadhav may be on his way out if sources in the government are to be believed. It is said that Jadhav had earlier this month communicated his desire to step down, to the civil aviation ministry, ahead of the end of his three-year term in May 2012. Jadhav, who took over from interim chief EK Bharat Bhushan, has now completed two years at the helm of India's loss-making national carrier.

According to sources, Jadhav, currently at the additional secretary rank, would be empanelled as secretary, government of India, next month and planned to serve in that capacity either at the centre or in his home cadre. He was selected in May 2009, during the tenure of Praful Patel as civil aviation minister, to turn around the sinking airline.

The 1978 Karnataka cadre, IAS officer who implemented reforms during his stint as joint secretary in the power ministry could however, do little to for the airline's waning fortunes given its accumulated mountain of debt and losses.

Further, Air India employees frequently struck work to press for higher pay, though the airline was heading for a record R7,000-crore loss in 2010-11. With the government unwilling to extend him support, Jadhav was forced to reinstate dismissed workers and re-recognise an Air India pilots union last month.

Jadhav, however, managed to get a R5,000-crore package for Air India, though he could not implement his turnaround plans.

According to analysts, if Jadhav does, indeed step down ahead of the expiry of his term, he would be leaving the airline with accumulated losses of about Rs19,000 crore and a working capital loan of R20,000 crore.