Thursday, July 9, 2015

In the mid-1960s, Ashok Vaish, Saroj Datta and I decided to start playing golf.  Unfortunately, the opportunities were limited as there was no Public Golf Course in Bombay and the initiation fees at the Private Clubs were prohibitive, leave alone the problem of being accepted as members.
I spoke with Mr. S.K. Kooka, our Commercial Director, who suggested that I check with the Bombay Presidency Golf Club in Chembur if they would agree to a Transportation Service Contract (TSC).  I spoke with the Secretary of the Club who agreed to allow Air-India to set up a Hoarding (Billboard) and that the Club would offset the cost against initiation fees for 3 members.  Mr. Kooka agreed and that is how the three of us and many more members of the staff benefitted in later years.
Thank you Air-India and thank you, Mr. Kooka.  Would you call this MOTIVATION?  I would.

Now to a more serious subject - THE ROT STARTS TO SET IN.
Soon after my return to office in early 1980, after open heart surgery, I traveled to Cairo for talks with the Egyptians regarding the reintroduction of our services to that country.
While I was there, I received the information that Mr. B.S. Das was leaving the airline. I spoke with him on the phone and he told me that not only he, but also Air Chief Marshall Lal had been relieved of their posts by the new Government.  Mrs. Indira Gandhi’s party had won and the Congress was back in power.  He advised me not to terminate my trip, but to continue with my talks and return soon thereafter.
On my return to Bombay, we received the news about the appointment of Mr. Raghu Raj as the Chairman and Managing Director.  I was reminded of the advice given to me by Mr. Appusamy to look for another job.  A few days later, similar advice was given to me by an old college friend Ravi Kathpalia who, upon graduation, had joined the Indian Audits & Accounts Service and was currently attached to the Civil Aviation Ministry.  He, obviously, knew what was in the offing.
In his first meeting with me, Mr. Raghu Raj (RR) asked what assistance I needed to improve Air-India’s profitability.  I informed him that our first priority should be to replace the ageing  707 fleet and lo and behold, to my great surprise, he told me a few days later (he had just returned from Calcutta) that he had an offer of four (4) 747 aircraft.  I asked him if that offer had come from a Mr. Bose in Calcutta and he confirmed that this was the case.  I told RR that for many reasons, we could not accept this offer.  Further, this offer had been rejected by us earlier and requested him to ask his Secretary to show him the Note that I had sent to Mr. B.S. Das the previous year.
RR called me subsequently and said that instructions to accept these aircraft had come from Delhi and if I felt strongly on this issue, he would arrange a meeting with the Minister.  I informed him categorically that my views had not changed and that they were supported by the Director of Engineering.  Later that evening, RR told me to meet him in Delhi that next morning at the residence of the Minister, Mr. J.B. Patnaik.  Both Mr. Kharkar (DE) and I flew to Delhi that evening and presented ourselves at the Minister’s residence the next morning.
Mr. Patnaik himself did not attend the meeting which was, instead chaired by a person whom I had heard of but never met.  He happened to be the Spiritual Guru (SG) to a very, very senior member of the Cabinet.
Said SG opened the meeting by asking who would be Air-India’s spokesman.  RR pointed to me and said that Mr. Sethi, who is the Dy. M.D. would be the spokesman.  SG asked why was I opposed to the directive to buy these aircraft.  I briefly explained to him that, among various considerations:
  1. Our need was to replace the 707s with an aircraft of similar capacity and the 747 did not meet this requirement as it was almost 2 and 1/2 times larger.
  2. Our policy is to order aircraft to meet our own specifications and fit into our existing fleet.  We cannot accept an aircraft already built as it will have different Avionics, Galley layout, seating configuration etc.
  3. Before ordering additional aircraft, we have to plan the recruitment of additional pilots, engineers and cabin crew and start their training.  Having 4 aircraft delivered at one time would mean that they would be sitting idle for many months.
The DE also stated that he did not have enough Engineers to take on 4 additional aircraft.  As it is, the Engineering Department was short staffed, having lost a number of engineers to foreign airlines.
The SG listened rather impatiently and then summarily informed me that the decision was irrevocable and that Air-India had no choice in the matter.  He instructed RR to sign the Letter of Intent.  RR spoke to me on the side and basically told me to hold my peace and so, to delay the inevitable, I requested that such a Letter of Intent should only be signed after we had had enough time to go through the specifications of the aircraft being offered.
This was agreed and we left with “our tails between our legs”.
Before leaving the premises of the Minister’s house, RR handed to me a Slip of paper contain a few items.  I asked him what he wanted me to do with this List and was informed “take care of it.  These are other directives from the Minister”.  I will comment on this List in another Post and at this stage, limit myself to the 4 747s.
I have seldom spent more sleepless nights than the ones after the meeting chaired by this Spiritual Guru.  I even spoke with the Director of Operations who said that he did not have the requisite number of pilots for such an increase in our fleet and agreed with me that there was no way that we could absorb them.  I pleaded with RR but all my efforts fell on deaf ears.
Finally, I called the Secretary to Mr. JRD Tata and requested a meeting with Mr. Tata stating that I needed to consult him on an extremely sensitive and urgent subject.  The Secretary spoke with Mr. Tata and asked me “Beer or Coffee”.  This was a code established by Mr. Tata with me way back when he was our Chairman.  A serious subject called for a meeting at his house with Coffee at 10:00am.  A not so serious discussion was usually conducted over a glass of Beer an hour later.  I emphatically stated “Coffee” and was told to meet Mr. Tata at his house the following Saturday morning at 10:00am.
I apprised Mr. Tata of the background and he asked if I had considered various steps that he listed out.  I answered in the affirmative and he then said “Inder, you have a problem” and I requested his advice.  He asked if I had some very close friends in the media and I promptly got the message.  I thanked him and left.  On reaching home, I called my “friend” in Delhi who flew down to Bombay and we had a fruitful meeting.  He asked me to leave the matter with him and said that I would hear or read something in the next 10 days.
He was true to his word and within a week, the Front Page of a National newspaper carried the headline which read something like “Air-India Buying Aircraft Unseen” over the byline of the Special Aviation Correspondent.  The main story indicated that officials of the airline had been summoned to Delhi and at a meeting in the house of the Aviation Minister, were directed to purchase 4 747 aircraft.  When the said officials stated that they could not usefully and economically absorb these aircraft, they were informed that they had no choice in the matter.  
Subsequent enquires by the Special Aviation Correspondent revealed that these aircraft were being hawked in the market by an Indian “go-between”  and had been ordered by the national airlines of Iran and Libya.  The delivery of these aircraft had been halted by the U.S. President, Ronald Reagan and were being offered at “a discount” to various airlines
The story further stated that 2 of the aircraft were actually ALL-CARGO aircraft and the Correspondent wondered if Air-India had the need for such large capacity freighters..
The subject came up for discussion at the next Parliament Session and the Civil Aviation Minister denied that such a meeting had taken place at his residence.  He was right - no such meeting had taken place at HIS residence because between the time of the meeting chaired by the Spiritual Guru and the Parliament Session, there had been a change of Ministers.  JB Patnaik had moved to Bhubaneswar as Chief Minister of Orissa and A.P. Sharma had taken over the Aviation portfolio.  However, Mr. Sharma promised to look into the allegation and if the facts reported were accurate, he would instruct Air-India not to accept the aircraft.
Two days later, RR called me to his office.  He was red faced and very angry.  He wanted to know if I had sabotaged the purchase of the aircraft.  I kept a very straight face and reminded him that the meeting had NOT been held behind closed doors and from time to time, various persons had peeped in and I gave him the name of Suresh Kilachand whom he (RR) had said hello to.  Anyone, I stated, could have surmised that something serious was being discussed and informed the media who were always on the lookout for such sensational stories.
RR told me categorically that I would be in deep and very hot water if he ever found out that I was behind this cancellation.  At this stage, I had had enough from him and asked him point blank - How much commission was being offered for this purchase and was he getting a cut?  He asked me to leave his office immediately, which I was more than happy to do.
The same morning, C.L. Sharma, the Dy. M.D. (Finance & Admin) came to my office and asked me that if an Inquiry were to be held, what would be my answer to the question - Was such a meeting held and was Air-India directed to purchase these aircraft.  I said that I would tell the truth as otherwise I would be committing perjury.
I called my media friend and thanked him profusely for helping to squash this deal.  I also called Mr. Tata who said that he had read with great satisfaction that his suggestion had proved successful.  He also cautioned me that this the aircraft deal was the tip of the iceberg and that I could soon be receiving instructions to act contrary to “accepted principles” on other issues.
How prophetic were these words and how timely, the advice?  

More on these in future Posts.

No comments:

Post a Comment