Air India sets aside up to 200 crore worth severance pay for employees

Air India is offering VRS to nearly 2,000 employees with a budget of up to Rs 200 crore. The non-flying staff has been given the chance to retire voluntarily.


Air India, a Tata Group-owned airline, is reportedly offering a voluntary retirement scheme (VRS) to almost 2,000 employees and has assigned up to Rs 200 crore for severance payments, according to a recent report by Livemint. The non-flying staff members have been offered this opportunity to retire voluntarily. 

This is the second time that Air India has provided such a scheme since being acquired by Tata Group in January 2022. As per an earlier report by Business Today, the VRS is open to general cadre officers who are permanent employees aged 40 or above and have served continuously for at least five years with Air India.

In another recent announcement, Air India revealed that it has agreed to acquire 470 aircraft, manufactured by Airbus and Boeing, to expand its existing fleet. The negotiation process with the aircraft manufacturers was led by senior executives Nipun Aggarwal and Yogesh Agarwal. 

Aggarwal mentioned in a LinkedIn post, which has now been deleted, that the deal involved not just the 470 aircraft but also 370 options, making it a significant milestone for Air India and the Indian aviation industry. The journey towards this procurement began almost two years ago, starting with the privatisation of Air India.

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