Air India introduces VRS and VSS for ground staff amid Vistara merger

BL Mumbai Bureau Updated - July 17, 2024 at 09:44 PM.

The VRS applies to employees with at least five years of service, while the VSS is for those with less than five years

The schemes, running until August 16, exclude pilots, cabin crew, and licensed post holders. With over 18,000 employees, Air India aims to complete the merger by year-end, potentially affecting 500-600 staff members.  | Photo Credit: ANI

Air India has introduced a voluntary retirement scheme (VRS) and a voluntary separation scheme ( VSS) for its ground staff as it prepares to integrate with Vistara.

This is the third VRS exercise since privatisation two years ago and is aimed at right-sizing the staff count. 

In a staff notification on Wednesday, the airline said the VRS scheme applies to  employees with a minimum of five years of continuous service and the VSS to those with less than five years of employment with Air India.

The schemes will run until August 16 and apply to permanent ground staff, excluding pilots, cabin crew, and any licensed post holders. Currently, Air India has over 18,000 employees.

The airline confirmed the development.

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. Employees have been informed of their new roles in the merged entity following a fitment exercise. However, Air India may have to let go of around 500-600 of its staff, though attempts are still being made to find suitable roles for them within the airline and other Tata group companies.

In a joint town hall meeting in May, Air India and Vistara executives said an unbiased and merit-driven approach has been followed for fitment. Current work roles and experience have been factored in to identify the best talent for each role.

Published on July 17, 2024 16:12

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