Air India was recently privatized after being state-owned and losing money for years. The airline was acquired by Tata Group, which also holds majority stakes in Vistara and AirAsia India. A few weeks ago, the airline announced its new CEO, and he has already resigned … before even starting work.
Turkey’s new CEO of Air India will not take office, however
In mid-February, Ilkey Ayci was appointed Chief Executive Officer of Air India, with plans to take office in April 2022. He was Chairman of Turkish Airlines from 2015 to 2022, having previously held several senior roles in The Turkish government, including the chairman of the Turkish Prime Minister’s Investment Support and Promotion Agency.
Now Aichi has announced that he does not intend to become CEO of Air India. As he explained:
“I came to the conclusion that it would not be a feasible or respectable decision to take a position in the shadow of such a narrative. My appointment with Air India within the Tata Group was announced earlier in February, starting on April 1. Following the announcement, I followed the news in some parts of the Indian media closely, trying to color my appointment with unwanted colors.
So what exactly is going on here? There have been allegations in the media that Aichi’s appointment to this position is a matter of “national security”. His appointment is subject to regulatory approval, including scrutiny by the Interior Ministry.
There were apparently concerns about Aiji’s close relationship with Turkish President Recep Tayyip Erdogan, given that he has acted as Erdogan’s advisory role in the past.
Okay, I can fully appreciate the challenge there and I’m not a fan of Erdogan. But exactly how much research is Tata Group doing before appointing a new CEO? You don’t have to browse Aichi’s Wikipedia page to see these close links to Erdogan. You would think that this would be determined before he gave up his old job and was offered a new job.
Anyone can guess whether Aichi has actually decided that he doesn’t want the job because of some media reports (which seems suspicious, since I imagine he has thicker skin), or he has been asked to retire.
The role of CEO of Air India is difficult to fulfill
I would like to see Air India turn around and become a great airline, but there is no denying that this is a huge task. There is so much to do and in many ways Air India would be better off just shutting down and starting over. The airline has an outdated fleet, obsolete flight products, labor problems and a non-competitive cost structure.
I can’t help but wonder who will be appointed next to this position. Will Air India try to hire another foreigner or will the airline look for local talent this time? The problem here is that even if someone is a very capable leader, the success of Air India is far from a sure bet. Accepting this job is a gamble in terms of reputation and future career prospects, assuming that this is not your last planned concert in the industry. Speaking of which, I think Doug Parker has some free time now?
Eventually
The newly appointed CEO of Air India has already resigned before even taking office. There were clearly concerns about the former Turkish Airlines chairman’s close ties to the Turkish presidentErdogan. At first glance, this is fair enough, although I’m not sure why this came about only after he was hired for the role and left his job at Turkish Airlines?
Who do you think Air India should appoint as CEO?
(The tip of the hat to Niraj)