News Business Air India introduces VRS and VSS scheme for non-flying permanent staff ahead of merger with Vistara

Air India introduces VRS and VSS scheme for non-flying permanent staff ahead of merger with Vistara

The Air India and Vistara merger is expected to affect around 600 employees from both airlines. Tata Group-owned loss-making full-service carriers -- Air India and Vistara -- together have more than 23,000 employees.

Air India, Vistara Image Source : FILE PHOTO Representative image

Air India-Vistara merger: Air India has introduced a voluntary retirement scheme (VRS) along with a voluntary separation scheme (VSS) for its non-flying permanent staff ahead of its merger with Vistara, said sources. This is the third time Air India has offered a voluntary retirement scheme to its permanent employees since its privatisation two-and-a-half years ago. Tata Group took over the reins of Air India in January 2022.

Who is eligible for VRS and VSS? 

The VRS scheme is available to employees who have completed five years of service with the company, while the VSS is offered to those with less than five years of service at the airline. 

Air India confirmed these developments but did not provide specific details about the twin schemes. The airline announced the schemes on Wednesday, giving employees a one-month window to apply for VRS/VSS.

Both the schemes were launched on July 17. The concerned employees were given one month's time to apply for VRS/VSS. 

Merger to affect over 600 employees

Around 600 non-flying staff of Air India and Vistara are expected to be impacted by the mega-merger of the two airlines and efforts will be made to provide job opportunities for the affected employees within the Air India group and other Tata companies. The Tata Group-owned Air India and Vistara, together employ more than 23,000 people.

Similar schemes are expected to be announced by Vistara soon. After completing the fitment exercise and assigning roles, some redundancies are inevitable. A source indicated that Air India is trying to accommodate some of the redundant employees within the Air India group or other Tata Group companies.

Vistara is a joint venture between Singapore Airlines and the Tata Group. After the merger is complete, Singapore Airlines will hold a 25.1 per cent stake in Air India.

The fitment exercise, which involves evaluating the roles and responsibilities of staff from both airlines, has been ongoing for the past few months in preparation for the merger. This process considers an individual's prior experience, performance, and other factors. As part of consolidating its airline business, the Tata Group is also merging Air India Express and AIX Connect (formerly AirAsia India).

(With PTI inputs)

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