Air India's new boss turns down Rs 70 lakh Willingdon Club's membership

NEW DELHI: Austerity begins at home for cash-strapped Air India's new chairman Rohit Nandan. In an unthinkable move for anyone holding this once-sought-after-position, Nandan has refused to renew two memberships of Mumbai's ultra prestigious Willingdon Club offered to the CMD and a top aide for a fee of Rs 70 lakh. His logic: If AI is not in a position to pay salaries on time, it should not be burdened with hefty membership renewal fee of a club.

According to sources, Air India CMDs have almost always been a member of the 1918-founded Willingdon Club - one of the most prestigious clubs of India. "The club offered to renew two memberships, each at Rs 35 lakh, for the CMD and one more official. Since availing of this offer would have cost Rs 70 lakh, Nandan decided against this given the absolute financial mess in AI that he has inherited," said sources.

With AI struggling to survive, thanks to questionable government decisions like huge aircraft order, merger of AI and Indian Airlines and gross mishandling by the last management team that ultimately led to the change of guard, Nandan has decided to cut costs wherever possible. On his first visit to Mumbai after taking over as CMD, he decided to stay in a Pawan Hans guest house and not a jazzy five star hotel.

"Nandan has also made it clear that he has no problem in flying economy class. His office has been asked not to block business class seat for him so that these high priced tickets can get sold and leads to some cash flow for the airline. He would travel business class only subject to availability of seat in the premium section or else be in economy," said sources. Being a sarkari airline, it has been very common for AI to block seats in first or business class for VVIP travelers like its CMD in advance.

Highly placed sources said Nandan's "down to earth" approach to life counted highly among other factors like a squeaky clean image and sharp administrative sense when aviation minister Vayalar Ravi and secretary Nasim Zaidi chose him to replace his controversial predecessor. "All the three top people - minister, secretary and CMD - enjoy a squeaky clean image. We trust they would work to save the airline and not to benefit private carriers at AI's cost like some of their predecessors," said a union leader in Delhi.