Air India's controversial chairman and managing director Arvind Jadhav is being dumped as the airline struggles to overcome crippling debts and operational issues.
Prime Minister Manmohan Singh says a new regime will be in place by Monday.
A turnaround plan prepared for Air India indicates the airline will require enormous investment over the next decade as well as 130 planes in addition to the 110 already ordered.
According to analysts, the current management was unable to arrest the airline's collapse due to financial stress caused by orders for 110 planes, the ill-thought merger of AI and Indian Airlines and serious mismanagement issues.
Last week the Star Alliance network and Air India suspended the carrier's integration with the global airline alliance as India has not met the minimum membership conditions.
By TravelMole Asia Pacific
