Rohit Nandan will continue to work as Chairman and Managing Director (CMD) of national carrier Air India for one month or till Ashwani Lohani takes over from him.
Arvind Jadhav, a senior IAS officer and the current CMD of Air India, was sent back to parent Karnataka cadre.
Air India's outgoing CMD Rohit Nanda helped the airline tide over crisis.
The Government had on August 11 approved three-month extension to Nandan "with the direction that the process of selection of a new CMD may be completed in the meantime.
The CMD's focus on raising employee morale and cutting costs is paying off. The airline's operating losses have shrunk and earnings are looking up
Air India had last year faced about two-month-long strike by its pilots.
In an attempt to plug revenue loss of Air India, Civil Aviation Minister Ajit Singh has imposed a blanket ban on excess baggage checked in by ministers and civil servants, which is generally carried free by the airlines
Air India would add about 400 daily flights and over 40 new destinations in India to the 27-member Alliance network of over 18,500 daily flights to 1,316 airports in 195 countries.
In one step forward, the Civil Aviation Ministry on Wednesday met for the first time to decide on allowing the Airbus A-380s to operate at some airports, years after some major foreign carriers sought the right to fly these superjumbos to India.
The development comes four days ahead of the launch of a training programme for pilots to fly the Boeing 787 Dreamliners.
The announcement by Air India CMD Rohit Nandan came on a day when two of the airline's six Dreamliners resumed commercial operations and operated regular flights from Delhi to Bengaluru and Kolkata.
Ashwani Lohani is presently working as Managing Director of Madhya Pradesh Tourism Development Corporation in Bhopal.
As Kashmir valley remains under flood water, Air India has decided to ferry free of cost tourists trapped in Srinagar while Gujarat and Bihar governments are sending 75,000 food and dry food packets for affected people.
Paving the way for Air India's entry into the largest global airlines' grouping, Star Alliance today unanimously decided to recommence the national carrier's integration process that was suspended in 2011.
A Boeing team of experts would be flying to India to assess the situation arising out of a series of faults in Air India's Dreamliner aircraft, even as the airline insisted that the aircraft is safe.
Pusapati was given detailed presentations on various aspects of the sector by senior officials of the Ministry.
While Air India employees are contributing a day's salary to the Prime Minister's Relief Fund, its pilots have offered to forego their allowances to operate to Dehradun.
Activist Subhash Chandra Agarwal had appealed to the CIC saying that the government had not provided "any information on the ground that the desired records constituted Cabinet papers and therefore could not be disclosed."
Civil Aviation minister says that certain regulations restricting the growth in the aviation sector needs to be re-looked to attract investments.