Mascarenhas takes it lightly

Our Bureau

MUMBAI, Nov. 29

MR Michael Mascarenhas, the first managing director of Air India (AI) to be suspended and subsequently reinstated to his post after the CBI exonerated him of corruption charges, has called for institutionalised safeguards to prevent the repetition of similar incidents.

Resuming office as Managing Director today, Mr Mascarenhas retires tomorrow. Asked, he said no successor has been nominated yet to take over from him on Friday, but then added, `` I am sure somebody will be nominated.''

While he has asked his lawyers to withdraw the case filed at the Bombay High Court on June 6, 2001, he felt those responsible for bringing about his suspension should be ``isolated'' and ``action taken against them.'' It should also be ensured that such an incident does not occur again in AI. ``That will be my contribution to the airline,'' Mr Mascarenhas said.

The writ petition he filed at the Court had sought inquiry into the illegality of his suspension order, the mala fide nature of the order and an investigation into allegations levelled by an outside agency like the CBI.

``I wish for something to be done on an institutional basis, not at a personal level,'' he said, when asked at a press briefing if he was likely to seek redressal for the experience dished out to him. ``I have had a very difficult period. There is trauma, a sense of shock, your family also has to face it,'' Mr Mascarenhas said of his suspension from May 23, 2001.

He denied there were various ``camps'' in AI, as cited by some officials. ``There are different viewpoints, but I am not aware of any camps. If anyone says so, it is a misrepresentation,'' he said.

On AI's future, Mr Mascarenhas said that the airline needed to breach the 24-25 aircraft-fleet size limit and grow into a 50 aircraft-strong ``large medium-sized airline.'' AI should then operate on long hauls with high frequency of flights and multi gateway operation.

Alongside, the flying experience offered must be upgraded into a ``contemporary and competitive'' product. Also, the VRS scheme devised some two years ago should be implemented. From a staff strength of 18,900 persons four years ago, AI's workforce has fallen to below 17,000, matching its 1985 level.

The managing director positioned himself as ``pro-Air India'' on the issue of disinvestment, favouring disinvestment if that was the sole route to getting the funds AI needs to grow. ``It is a pity disinvestment has been delayed,'' he said.

In this context, Mr Mascarenhas pointed out that Indian Airlines (IA) had reportedly been granted assistance worth Rs 9,000 crore by the government. ``If they can give to IA, they can give to AI too,'' he said, adding, ``I know the Civil Aviation Minister is going to look into the matter.''

AI's passenger traffic has dipped by only 5-6 per cent since September 11, the impact of the WTC attack being most on Atlantic markets.

However, notwithstanding his agreement with the view that sectoral developments post-September 11 demand urgency in addressing AI's financial needs, Mr Mascarenhas declined comment on whether AI was a better candidate than IA to merit government assistance at this juncture. While IA has a large domestic presence with a modest international operation, AI's exposure to international routes is bigger.

Pic.: Mr Michael Mascarenhas, Managing Director, Air India, at a press conference in Mumbai on Thursday.

Picture by Shashi Ashiwal