Worried at the poor financial health of the State-owned airline, the Government is expected to announce a major revamp of the debt-laden Air India in a day or two. The proposed revamp could see a change of guard at the very top.

This comes on the heels of a meeting the Prime Minister, Dr Manmohan Singh, had with the Civil Aviation Minister, Mr Vayalar Ravi, and senior officials of the Ministry here on Wednesday.

In the past few weeks, the Air India Chairman and Managing Director, Mr Arvind Jadhav, has been facing sever criticism for his running of the airline. Mr Rajiv Pratap Rudy, a former Civil Aviation Minister, has alleged that Mr Jadhav was appointed to the CMD's post in 2009 despite being rejected for the top post a year earlier.

Airline sources point out that any change of guard can be done by the Prime Minster-headed Appointments Committee of Cabinet (ACC). The Committee appointed Mr Jadhav on May 4, 2009, for three years; he can be removed from his position before the expiry of his tenure only by the ACC.

The airline has also been facing a financial crunch with staff salaries and payments to vendors getting delayed. Even on Wednesday the public sector oil marketing companies had, for a brief while, stopped fuel supplies to the carrier.

PM's assurance

The Prime Minister recently assured Parliament that all steps will be taken to ensure that salaries of Air India employees are paid on time.

The revamp could also see some senior officials being appointed as functional directors of the airline.

A Group of Ministers headed by the Finance Minister, Mr Pranab Mukherjee, which is monitoring the financial restructuring and turnaround plan of the airline, is to hold its next meeting on August 17.

>Shishir.s@thehindu.co.in

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