In a surprise choice, Ashwani Lohani, a Railway Service officer who is now the chief of Madhya Pradesh Tourism Development Corporation (MPTDC), was today appointed as CMD of Air India.

An engineer-turned-bureaucrat, Lohani, who is the first Railway Service officer to be made the Chairman and Managing Director of Air India, will succeed Rohit Nandan, a 1982 batch UP cadre IAS officer.

The appointment of Lohani as AI chief, for a three-year period from the day he takes charge, comes at a time when the airline is surviving on a ₹30,000-crore bailout package for 10 years approved in April 2012 under a Turn Around Plan/Financial Restructuring Plan.

Nandan was appointed to the post in August 2011 for a three-year period. He was, however, given extension which is ending this month.

Sources said Lohani is expected to take charge only in the third week of September and that Nandan may be asked to continue till that time.