Crisis begins in Air India as Ayci turns down CEO role

Ilkar Ayci, the former chairman of Turkish Airlines, in a statement cited political controversies to decline the assignment. His decision leaves the new owner of Air India with the new challenge of hunting for a new leader of the recently privatized airline.

Known as a turnaround specialist, IC’s appointment, announced soon after the acquisition of Air India by Tata Sons in January, raised hopes of a speedy recovery for the airline, which has been reeling from an aging aircraft fleet, rising debt and its labor force. Many of the legacy issues arising from the unions were marred by issues.

But just a fortnight after his appointment, the IC on Tuesday declined to take up the position. His decision could hurt Tata’s ambition to quickly turn around Air India’s fortunes and help the company regain market share assigned to rivals.

In his previous incarnation as Turkey’s flag-bearer chief, Aysi’s appointment has faced opposition from some political corners due to alleged links with dubious entities. A right-wing group close to the Bharatiya Janata Party asked the government to stop the appointment, citing the IC’s past political ties in Turkey.

BJP ideologues, the economic wing of the Rashtriya Swayamsevak Sangh (RSS), demanded a background check for IC before taking over at Air India, as IC was an adviser to Turkish President Tayyip Erdogan before his stint at Turkish Airlines, when He was Mayor of Istanbul in the mid-1990s.

Erdogan, a close ally of Pakistan, had earlier raised the issue of Jammu and Kashmir in the United Nations, to which the Indian government had strongly objected.

“I have come to the conclusion that it would not be a viable or an honorable decision to accept the situation in the shadow of such a narrative,” the IC said in its statement.

Tata Sons declined to comment on the development.

IC, who headed Turkish Airlines for more than six years from 2015, was to assume charge of Air India from April 1. However, the appointment was pending regulatory approval.

The announcement of his selection by Tata Sons on 14 February lit up a ray of hope for Air India employees and thousands of passengers.

At the time, IC stated that their ambition was to make Air India “one of the best airlines in the world”.

If he accepts the role, IC will face the monumental task of reviving the legacy-laden, cash-strapped and aging carrier.

Tata took control of India’s flag carrier in January for $2.4 billion, ending decades of efforts by the government to privatize the airline to stem the flow of public funds to run the airline.

Losing IC could come as a blow to both the government and the Tata group, which are looking to back Air India to compete with the glamor of other private carriers and protect its market share. This is especially true because of how Ayci reversed the fortunes of Turkish Airlines.

Turkish Airlines struggled like many other carriers in the first year of the coronavirus outbreak, with global lockdowns causing air traffic revenue to disappear.

Ayci helped Turkish Airlines capitalize on its booming air freight business by reducing employee costs.

Bloomberg contributed copy.