Air India Initiates VRS Ahead Of Vistara Merger
Vistara, a joint venture between the Tata Group and Singapore Airlines, is set to merge into Air India by the end of this year
As part of its upcoming merger with Vistara, Air India announced on Wednesday the introduction of a voluntary retirement scheme (VRS) for its permanent ground staff.
Vistara, a joint venture between the Tata Group and Singapore Airlines, is set to merge into Air India by the end of this year. An Air India executive stated that the merged entity would require fewer ground staff, prompting the initiation of an "optimisation" process, as per reports.
In its communication to ground staff, Air India clarified that all permanent ground staff—excluding pilots, cabin crew, and any licensed role holders—would be eligible for these schemes. The window for participation in these schemes will remain open until 16 August. The airline noted that the "acceptance" of applications and the "release date" would be determined by the management.
Media reports indicated that approximately 500-600 employees, out of a total of 18,000 from both carriers, are expected to take retirement or separation. The airline is making efforts to retain as many employees as possible, with some being absorbed into other Tata Group companies. However, certain positions have become redundant due to the merger. Ground staff in an airline generally refers to employees handling tasks on the ground, including those at the corporate headquarters, such as customer service, baggage handling, security checks, ramp service, and cargo operations. They assist passengers, manage luggage, perform security screenings and coordinate with flight crews and other airport personnel.
The merger of Vistara into Air India aims to create a single full-service carrier. Concurrently, Air India's subsidiaries, AIX Connect and Air India Express, are merging to form a unified low-cost airline. Earlier this month, Air India announced the completion of harmonising operating procedures across key functions for the four Tata Group airlines, including the alignment of supporting manuals, marking a crucial step in the ongoing merger process.
