The Appointments Committee of the Cabinet (ACC) approved the extension of Nandan as the airline's Chairman and Managing Director "till August 21, 2015 or till the appointment of a regular incumbent, whichever is earlier," an order issued by the Department of Personnel and Training (DoPT) said.
This is the second time that 57-year-old Nandan, a 1982 batch IAS officer of Uttar Pradesh cadre, has been granted an extension. The first extension came on August 11 after he completed a three-year term at the helm of Air India, so that "the process of selection of a new CMD may be completed in the meantime".
Following this, the Civil Aviation Ministry had sought his continuation in the post crediting Nandan with improving the performance of the loss-making airline and successfully making Air India a member of the 27-member global airlines grouping, Star Alliance.
The Ministry was also understood to have pointed out that a new appointment would disturb continuity and affect Air India's performance at a critical stage when its overall performance had started looking up.