The following was posted on 29th March, 2010 under the caption "Air india's intriguing transparency". It was suggested that if a foreigner was appointed as AI's COO, problems would abound since he would not be comfortable with political nuances in managing the organisation :
"It is customary for companies to be discreet about selection of new CXOs and not to announce names of contenders / applicants till the final choice is effected. One is surprised therefore that Air India sources have gleefully announced that the new COO will be one of the three shortlisted who have been named. They are presently with Austrian Airlines, Air Malta and Rapidair.
Will this not needlessly create friction in the relationship of these applicants with their present employers ? This apart, is it likely that there is no one within the country who can do a better job ? Air India is not just a business organisation. It is also caught in a political cobweb and hence someone more appreciative of India's political nuances would be a better choice. But then, serial bungling is Air India's forte ! "
Unfortunately the prediction has come true so soon.
The Financial Express has published the following interview with Gustav Baldauf, COO, Air India:
"Gustav Baldauf, the COO of Air India, has not had a smooth flight eversinceheassumedoffice.Soonafter he got the offer letter, his annual pay package of about Rs 3 crore created a storm with airline employees openly questioning the management's decision to appoint him.Subsequently,he had to face the ire of the aviation ministry for being on foreign trip when the airline was shifting its operation from the old terminal to the modern T3 at the Delhi airport. His decision to appoint Pawan Arora as the COO of the airline'sbudgetarmAirIndiaExpress has been revoked by the govern ment. In an interview with FE's Nirbhay Kumar, Baldauf spoke regarding the controversiessurrounding him stating that politics seems to be driving decisions in AI, which is not good for anybody.
How do you read the government's decision to sack Air India Express COO Pawan Arora?
I would not like to comment on the decision. What I though understand from the development is that a lot of politics is going on. Politics is influencing the decisionmaking in the airline. It's not good for Air India. It's not good for the country as the entire world is watching it. I don't want to go into politics.
There are reports that other outside professionals could also be in the firing line including you...
For appointment of the airline COO advertisements were publishedinternationally .Candidates across the world applied for it. I was selected purely on the basis of merit and experience. I am an operational expert and just want to do my job. However, it's difficult to work in this environment. It negatively affects the morale of the employees. All the new people who have joined are professionally competent. Captain Arora, for example, was very focused on his targets.
It's only bad things which keep appearing in the media about Air India. I don't want my staff to be de-motivated by reading newspaper reports in the morning. Only badthings are pointed out.Nobody looks at so many good things happening in the airline since these are expected. I have rarely heard peopletalkingaboutourpreparedness during the fog season, optimum utilisation of the fleet and rising load factor, for instance. What's the progress on the implementation of the turnaround plan?
The turnaround plan is not something which could be implementedoverthree months or six months. It's a complete threeyear plan. As part of this,severalstepshavebeentaken and further steps need to be taken consistently . The government wants us to improve. It should help us in doing that. The two airlines (Indian Airlines and Air India) have been merged. It's a totally new company . So, several operating processes have to be put in place. The three key processes -flight, customer service and HR are being streamlined. We are taking measures to address HR issues.
With several things in place we are doing better and better.However,it takes time to set up systems.
You have worked with so many airlines and in so many countries. How has been your experience working with Air India?
I have seen different cultures. I grew up in Europe. It's easy to build systems in Europe. It's a bit difficult in Russia. It's even more difficult in India since the culture here is different. In Air India, the system is completely different."
It is also surprising that people are ready to become CXOs without making any due diligence about the companies they are joining.
Update on 7th March 2011: Gustav Baldauf has since resigned. The new Minister for Civil Aviation says GB has not been able to convince him on his work.
"It is customary for companies to be discreet about selection of new CXOs and not to announce names of contenders / applicants till the final choice is effected. One is surprised therefore that Air India sources have gleefully announced that the new COO will be one of the three shortlisted who have been named. They are presently with Austrian Airlines, Air Malta and Rapidair.
Will this not needlessly create friction in the relationship of these applicants with their present employers ? This apart, is it likely that there is no one within the country who can do a better job ? Air India is not just a business organisation. It is also caught in a political cobweb and hence someone more appreciative of India's political nuances would be a better choice. But then, serial bungling is Air India's forte ! "
Unfortunately the prediction has come true so soon.
The Financial Express has published the following interview with Gustav Baldauf, COO, Air India:
"Gustav Baldauf, the COO of Air India, has not had a smooth flight eversinceheassumedoffice.Soonafter he got the offer letter, his annual pay package of about Rs 3 crore created a storm with airline employees openly questioning the management's decision to appoint him.Subsequently,he had to face the ire of the aviation ministry for being on foreign trip when the airline was shifting its operation from the old terminal to the modern T3 at the Delhi airport. His decision to appoint Pawan Arora as the COO of the airline'sbudgetarmAirIndiaExpress has been revoked by the govern ment. In an interview with FE's Nirbhay Kumar, Baldauf spoke regarding the controversiessurrounding him stating that politics seems to be driving decisions in AI, which is not good for anybody.
How do you read the government's decision to sack Air India Express COO Pawan Arora?
I would not like to comment on the decision. What I though understand from the development is that a lot of politics is going on. Politics is influencing the decisionmaking in the airline. It's not good for Air India. It's not good for the country as the entire world is watching it. I don't want to go into politics.
There are reports that other outside professionals could also be in the firing line including you...
For appointment of the airline COO advertisements were publishedinternationally .Candidates across the world applied for it. I was selected purely on the basis of merit and experience. I am an operational expert and just want to do my job. However, it's difficult to work in this environment. It negatively affects the morale of the employees. All the new people who have joined are professionally competent. Captain Arora, for example, was very focused on his targets.
It's only bad things which keep appearing in the media about Air India. I don't want my staff to be de-motivated by reading newspaper reports in the morning. Only badthings are pointed out.Nobody looks at so many good things happening in the airline since these are expected. I have rarely heard peopletalkingaboutourpreparedness during the fog season, optimum utilisation of the fleet and rising load factor, for instance. What's the progress on the implementation of the turnaround plan?
The turnaround plan is not something which could be implementedoverthree months or six months. It's a complete threeyear plan. As part of this,severalstepshavebeentaken and further steps need to be taken consistently . The government wants us to improve. It should help us in doing that. The two airlines (Indian Airlines and Air India) have been merged. It's a totally new company . So, several operating processes have to be put in place. The three key processes -flight, customer service and HR are being streamlined. We are taking measures to address HR issues.
With several things in place we are doing better and better.However,it takes time to set up systems.
You have worked with so many airlines and in so many countries. How has been your experience working with Air India?
I have seen different cultures. I grew up in Europe. It's easy to build systems in Europe. It's a bit difficult in Russia. It's even more difficult in India since the culture here is different. In Air India, the system is completely different."
It is also surprising that people are ready to become CXOs without making any due diligence about the companies they are joining.
Update on 7th March 2011: Gustav Baldauf has since resigned. The new Minister for Civil Aviation says GB has not been able to convince him on his work.
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