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Air India plans VSS Scheme for 600 Employees due to merger


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Air India is planning a voluntary separation scheme (VSS) for approximately 600 employees following the merger with Vistara. However, the airline intends to retain its entire flying crew as it prepares for significant operational expansion after the merger.

Communication about Redundancies:

The airline’s management has informed its employees about the potential redundancy of roles post-merger. In an effort to minimize job losses, the Tata Group, which owns Air India, is exploring options to provide affected employees with new roles through upskilling and placement in other group companies.

Implementation of VSS:

Sources suggest that the VSS might be implemented by the middle of the current month, pending board deliberation. Air India currently employs around 19,000 individuals, including both contractual and permanent staff, while Vistara has approximately 6,500 employees.

Employee Benefits:

In addition to the VSS, Air India plans to extend health and other benefits to the affected employees, as part of its efforts to support them through the transition.

Fitment Exercise and Merger Process:

A comprehensive fitment exercise, conducted in consultation with global firms like BCG and Deloitte, has been completed across the two airlines. The airline group is expediting the legal merger process, while operational assimilation may require additional time.

Operational Alignment:

Air India has aligned operational processes, pay scales, employee grades, and roles with Vistara as part of the merger integration process.

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