Air India Offers VRS to Ground Staff in Preparation for Vistara Merger

Priyal DuttaJuly 19, 20241 Mins read617

Air India Takes Proactive Step with VRS for Non-Flying Staff Before Merger

According to sources, Air India has implemented a voluntary retirement plan (VRS) and a voluntary separation program for its non-flying permanent employees in preparation for the merger with Vistara. The VRS program is open to employees who have completed five years of service with the company, whereas the voluntary separation scheme (VSS) is available to employees who have served less than five years with the airline.

Together, the loss-making full-service airlines controlled by the Tata Group, Vistara and Air India, employ more than 23,000 people

Air India verified the developments without providing specific details about the twin projects launched on Wednesday. The airline granted applicants one month to apply for VRS/VSS. This is the third time Air India has announced a voluntary retirement option for permanent personnel since its privatization two and a half years ago. Tata Group took over Air India in January 2022.

The previous few months have been devoted to the fitment exercise, which entails assessing the roles and duties of both airlines’ employees in the lead-up to the merger

Earlier this month, sources told PTI that the merger will affect approximately 600 airline personnel. Air India and Vistara, both owned by the Tata Group, are loss-making full-service carriers with over 23,000 employees.

Vistara is a joint venture between Singapore Airlines and Tata Group

Vistara is expected to announce similar plans after completing the fitting process and position assignments. According to a source, certain redundancies are unavoidable, and Air India is attempting to absorb some of the superfluous personnel within the Air India group or other Tata Group enterprises.

Written by

Priyal Dutta - Senior Correspondent/Editor

As Senior Correspondent and Editor at Safari India, I write about the people, businesses, and trends shaping the travel, tourism, hospitality, aviation, and lifestyle industries. My work ranges from breaking news and exclusive interviews to in-depth features and industry analysis, with a focus on delivering accurate, balanced, and engaging stories. I enjoy uncovering the details behind every story and presenting them in a way that keeps readers informed and connected to an ever-evolving industry.