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The Centre might consider a successor to Air India Chairman and managing director Arvind Jadhav, once the financial restructuring plan is cleared.

The civil aviation ministry has also reached a consensus to give a five-year term to the next CMD of the ailing state-owned airline.

Meanwhile, Air India CMD Arvind Jadhav is said to be prepared to face the worst.

Sources close to him said that since his appointment was done by the Appointments Committee of the Cabinet (ACC), it was government's prerogative to retain or remove him from the post before his three-year tenure ends on May 4 next year.

Though Civil Aviation Ministry officials denied having made any move for removing him, 55-year old Jadhav is facing criticism for the grave financial crisis facing Air India.

The sources, while making it clear that Jadhav was appointed for a three-year period, said he was prepared to work anywhere else if the government so wanted.

Jadhav might also become a secretary in the civil aviation ministry by mid-October 2012 and it was unlikely that he will continue as the chairman.

In the financial restructuring plan, the airline proposes to issue redeemable preference shares for Rs. 7,400 crore (Rs. 74 billion), of the Rs. 22,165 crore (Rs. 221.65 billion) working capital loans, with eight per cent dividend.

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It is also considering steps to enable it to repay Rs. 11,100 crore (Rs. 111 billion) of loans at 11 per cent interest over a 15-year period.

Top ministry officials said Jadhav had indicated that the implementation of the restructuring plan would take at least five years and a new management team should be at the helm of affairs in the company.

The airline also has to appoint two new directors - Director (finance) and Director (Personnel). The ministry has to approach the Appointments Committee of the Cabinet asking for a replacement for Jadhav.

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However, a senior ministry official said no such move had been made. And Jadhav, who was in Trivandrum on Monday, has neither been told to go on leave, which is sometimes the process when a new head is nominated.

However, the airline and Jadhav have been under fire recently from all sections. The recent jibe was from Bhartiya Janata Party spokesperson Rajiv Pratap Rudy alleging that norms were manipulated and the PMO had intervened in the process of appointing Jadhav.

The BJP had said the Prime Minister should take steps to remove him from the post.

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A call in attention motion has been filed in the Lok Sabha on the dwindling passenger share and poor financial health of Air India resulting in delayed payments of wages and other benefits to employees.

The ministry has been asked to earmark the steps which have been taken by them to address the issues.

The airline has dues, including Rs. 2,300 crore (Rs. 23 billion) to oil marketing companies, around Rs. 800 crore to airport operators and Rs. 400 crore (Rs. 4 billion) to other vendors.

Various sections of employees, including pilots, have alleged the incumbent chairman of functioning in an autocratic manner.

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Meanwhile, PTI adds that BJP on Tuesday alleged that Jadhav was responsible for "financial mismanagement" and demanded he should be sacked "outright" and disciplinary proceedings initiated against him.

Party spokesman Rajiv Pratap Rudy alleged that the Prime Minister's Office was "straight away responsible" for the "manipulated appointment" of Jadhav even after he was not found fit by it previous year "on the basis of lack of domain experience".

"The BJP would like to say very categorically that removal is not a solution. The gentleman concerned who is responsible for a financial mismanagement of Rs. 70,000 crores (Rs. 700 billion) should be sacked outright.

"He should be suspended and disciplinary proceedings should be instituted against him. That is important," Rudy told reporters in New Delhi.

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He was reacting to reports that the government was looking for a suitable replacement of Jadhav. After the Parliamentary Party meeting of the party, Rudy also questioned Prime Minister on Jadhav's appointment as Air India chief a year after he was not found fit.

"How come the same man the following year become competent and got domain experience?" Rudy asked.

"And this is what we call the manipulated appointment for which straight away the PMO is responsible," he alleged.