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

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.

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. 

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 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.