Air India seeks one-year extension for Director-Finance

National carrier Air India has sought a one-year extension for its Director-Finance S Venkat, who is also holding the additional charge of Deputy Managing Director, from the Civil Aviation Ministry.

The airline has written to the Ministry, seeking one-year extension for Venkat, who is set to retire in October this year, sources close to the development told PTI. The sources said the airline has also sought postponement of the interview for recruitment to the post by Public Sector Enterprises Board (PSEB).

The extension granted to the current CMD Rohit Nandan expires in August, they said, adding, "It does not want two new persons in the crucial positions when the airline is trying to turn around."

"If the director finance is given extension, he would help the new CMD understand the issues in a better manner," the sources said. PSEB has short-listed 5-6 candidates for the post of Director-Finance and is to conduct interviews on Thursday. "The airline has requested that the interview be deferred for some time as it was awaiting a response to its application for Venkat's extension," they said.

Earlier, the Civil Aviation Ministry had sought a two- year extension for the current Nandan, who is a 1982-batch UP-cadre IAS officer in October last year but the government allowed him to continue in the post only till August.

Nandan is at the helm since August 2011. The PSEB, which conducted interviews for selecting a new CMD for the state-run airline early last month, did not find any candidate suitable for the top job and recommended that the government choose an appropriate course of action for selection.

Air India is surviving on a bailout package approved in 2012. The erstwhile UPA dispensation had in April 2012 approved Air India's turnaround plan (TAP), with a committed public funding of Rs 30,231 crore, staggered over a period of nine years, with some specific riders.

After a streak of losses, Air India had reported a net profit of Rs 14.6 crore in December last year, from a loss of Rs 168.7 crore in the corresponding period of 2013.

The airline in its budget estimates for this fiscal, presented late last month, has forecast that it would become operationally profitable by March next year, much ahead of the TAP projections.