Air India has introduced a voluntary retirement scheme (VRS) and a voluntary separation scheme (VSS) for its non-flying permanent staff ahead of its merger with Vistara. This marks the third VRS since Air India’s privatization two and a half years ago.
Details of the Schemes:
● Voluntary Retirement Scheme (VRS): Open to employees who have completed five years of service.
● Voluntary Separation Scheme (VSS): Available for employees with less than five years of service.
Both schemes provide a one-month window for eligible employees to apply. The initiatives are part of efforts to streamline operations as Air India and Vistara prepare to merge.
Background and Impact
Tata Group, which took over Air India in January 2022, oversees the merger. The integration is anticipated to affect around 600 employees from both airlines. Collectively, Air India and Vistara employ over 23,000 individuals.
Future Steps
Vistara, a joint venture between Singapore Airlines and Tata Group, is also expected to announce similar schemes soon. Air India aims to place some redundant staff within the Tata Group companies.
Once merged, Singapore Airlines will hold a 25.1% stake in Air India. The fitment exercise, evaluating roles and responsibilities, has been ongoing for months, considering factors like experience and performance.
In a related move, Tata Group is also consolidating Air India Express and AIX Connect (formerly AirAsia India) as part of its airline business strategy.
