Air India plans to launch a Voluntary Separation Scheme (VSS) for about 600 employees facing redundancy following its merger with Vistara. Despite the workforce adjustments, the entire flying crew will be retained to support the airline’s significant operational expansion post merger.
The scheme may be implemented by mid-July, as soon as the board approval comes.
In recent communications, the airline’s management has informed employees about potential job redundancies due to the merger. To mitigate job losses, the Tata Group is offering alternative roles through upskilling and redeploying employees within other group companies.
In addition to the VSS, the airline plans to extend health and other benefits to affected employees. This decision follows a comprehensive fitment exercise conducted in collaboration with global firms such as BCG and Deloitte.
The airline group is expediting the legal merger process, although operational integration may take longer.
Currently, Air India employs around 19,000 staff members, both contractual and permanent, while Vistara has approximately 6,500 employees.
Air India has streamlined and aligned operational processes, pay scales, employee grades and roles with those of Vistara.
On 13 May, 2024, all the employees of both the airlines were addressed by Campbell Wilson, chief executive officer, Air India and Vinod Kannan, chief executive officer and chief integration officer, Vistara in a phygital townhall meeting. About 23,500 employees in total, were a part of the meeting where they were updated about the progress of the deal so far and what lies ahead for the merged entity.
