The cash-strapped national carrier, saddled with an accumulated loss of Rs 7,200 crore and a debt burden that is estimated at Rs 15,000 crore, has opened its purse strings for its new expatriate COO.
Turnaround man Gustav Baldauf, the first Chief Operating Officer (COO) of Air India, would be one of the highest-paid public sector executives in the country with an annual pay package of about Rs 3.1 crore.
Baldauf’s compensation package includes a monthly salary of 29,000 euros (around Rs 16.5 lakh). The Austrian would be paid another 200,000 euros (Rs 1.13 crore) annually if he achieves the “deliverables assigned”.
“He would also be provided company-owned accommodation, medical insurance, car, phone and other perks,” an airline official, who did not wish to be named, said. The AI board would vet the contract, which would be for a period of three years and extendable by two years based on performance.
The COO, based in Mumbai, would be a part of the top management team and would oversee the overall operational performance including engineering, inflight, commercial, operations. He would report to CMD Arvind Jadhav.
Baldauf has over 25 years of experience in the aviation industry and was with Austrian Airlines as its executive vice-president (flight operations). He also worked with Jet Airways as its vice-president (flight operations).