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Rono Dutta Is Second Indian To Head An American Airline

R S Shankar

Soon after he was named president of United Airlines, the largest airline in the world, Rono J Dutta received a phone call from a close friend, who also happens to be his rival.

Rakesh Gangwal, who worked with Dutta for about nine years at the United Airlines and left five years ago to join US Airways, was one of the first callers to phone and congratulate Dutta in his office at Elk Grove, near Chicago.

With Gangwal as president of USAirways and with Dutta's promotion from senior vice president for planning, the American aviation industry has two Indians at the top.

Gangwal, based in Arlington, was named president of US Airways seven months ago.

There is a lot of common history between the two: They are graduates of the Indian Institute of Technology in Kharagpur; both hold master's degrees in business administration. While Gangwal went to Wharton School of the University of Pennsylvania, Dutta earned his MBA from the Harvard Business School

"There is no question that these are the two smartest in the industry," said Kevin Murphy, airline industry analyst for Morgan Stanley, Dean Witter, told Chicago Tribune.

"Rono was tutored by Rakesh. They are from the same page," said Murphy. Dutta has been with United Airlines since 1985.

Dutta, 47, will assume the office president on July 13, the same date that James Goodwin, president and chief operating officer, becomes chairman and CEO, United Airlines.

United Airlines is also the world's largest employee-controlled corporation. Employees currently own 55 per cent of the corporation, and since United's employee buyout in 1993, the company has revived profits and recorded unprecedented sales. United's recent success as an airline, however, comes after years of bitter union battles and failed forays into the hospitality business. Last year its revenues exceeded $18,000 million.

Dutta will assume responsibility for all aspects of United that directly touch the customer. In addition to overseeing United's North American and International divisions, Dutta will assume leadership of its growing network of alliances and code-share agreements. He will also oversee all other business activities that relate directly to customers, including marketing, onboard services and cargo. United Airlines flies to 130 cities on five continents and employs nearly 100,000 people.

A few days ago it cancelled plans to operate non-stop daily service between Chicago and Delhi, India. The new service was scheduled to commence by October 31, 1999. The decision not to proceed with the new route is based on United's latest assessment of the economic viability of the route given the complexities of flying such a long route. United has informed all its employees in Delhi of the decision not to operate the new flights. The company said it will continue to discuss a number of different options with these employees.

Next story: Family, Friends Rally Around Basuta

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