A-I MD Mascarenhas suspended
New Delhi: The government today suspended Michael Mascarenhas, the managing director of Air-India for allegedly "misusing his official position".

Deputy managing director JN Gogoi has been appointed as the new managing director.

Mascarenhas, 57, has been the managing director of A-I since August 1997. He was said to be keenly in favour of the airline’s privatisation.

Speaking to a news agency, Mascarenhas said that he was surprised at the nature of the order that is highly irregular and has been based on charges with obvious mala fide adding that he was seeking legal advice and would challenge the order in an appropriate court of law.

The civil aviation ministry alleges that, "The managing director in concert with other officials of AI misused his official position by showing unwarranted favour to Welcome Travel (ex-general sales agent), UK, by restricting productivity-linked incentives to the wrongful advantage of the ex-GSA and to the detriment of the interests of A-I for the period 1992-93, 1997-98 resulting in wrongful gains to Welcome Travel and corresponding wrongful loss to Air-India to the extent of Rs 2.79 crore."

The suspension has come at a time when the government has received bids for selling its 40 per cent stake in the national carrier.

The government has received two bids for 40 per cent of Air- India. One of the bids is from Singapore Airlines which has bid in tandem with the Tata group. The UK-based Hinduja brothers form the second bidding group.
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