Vistara is offering voluntary retirement scheme (VRS) for its ground staff as it prepares to merge with Air India. Vistara's move comes close on the heels of a similar announcement by Air India earlier this month.
Vistara has 6,500 staff, which is around a one-third of Air India's workforce.
Ex-gratia amount
The Tata-Singapore Airlines joint venture has declared that permanent ground staff with more than five years of continuous service can apply for a VRS. The scheme is not open for pilots, cabin crew, licensed post holders and those retiring by March 31, 2025. Those availing the scheme will get an ex-gratia amount in addition to statutory benefits such as Provident Fund, gratuity etc. The scheme will be open till August 23.
According to a source, VRS has been proposed for those who have not been given a role in the proposed merged entity. " The number of impacted Vistara employees is in low double digits but efforts are still on to accommodate them in the proposed merged entity," he said.
In case of Air India, the airline may have to let go off around 600 staffers in the integration exercise. Air India has had two rounds of VRS since privatisation and the third scheme was announced in July. The airline had on July 17 announced a VRS for permanent ground staff holding more than five years of experience, and a VSS (Voluntary Separation Scheme) for those who had less than five years of service.
The National Company Law Tribunal gave its nod to Vistara's merger with Air India in June, and the two airlines are targeting the end of the year to complete the integration. Earlier this month, the Directorate General of Civil Aviation approved harmonised operating manuals that adopt best practices and operating procedures of two airlines.