Air India staff to be asked to vacate company accommodation in 6 months

Air India has colonies in Delhi and Mumbai, where flats are allocated to staff members at subsidised rent


The Government of India has asked Air India, to ensure that its employees vacate company-provided accommodation within six months of the divestment of the airline.

The Ministry of Civil Aviation informed the Air India CMD about this decision via a letter on September 29. The letter announced that strict action would be taken by the Government if employees don’t vacate the premises within the specified time. “Appropriate binding legal and other arrangements, including financial disincentives, should be formulated to enable prompt vacation of the properties by the employees,” the letter said.

The decision was taken by the Air India Specific Alternative Mechanism (AISAM) at its meeting held on August 9, 2021.

Air India has colonies both in Delhi and Mumbai, where flats were allocated to the employees at subsidised rates. The Government’s decision has rattled the staff of Air India, especially in metro cities such as Delhi and Mumbai, where rents are very high.

The letter asks serving employees to vacate the premises within six months. However, employees retiring on September 30, 2021 will be allowed to retain the accommodation for up to four months or six months post divestment or “till the property is monetised, whichever is earlier”.

Air India’s divestment is in its final stage at the moment. According to Bloomberg, Tata Group has won the bid for the national carrier. A panel of ministers has accepted the Group’s proposal, and an official announcement is expected soon.

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