Vistara, set to merge with Air India by the end of this year, has launched a voluntary retirement scheme (VRS) for its ground staff. This initiative comes as both airlines, operated by the Tata Group, prepare for consolidation to streamline their workforce and improve efficiency.
As per a message sent to the employees, the VRS is available to permanent ground and non-flying staff with over five years of continuous service, running until 23 August. Eligible employees will receive statutory benefits such as gratuity and provident fund, along with non-statutory perks such as medical insurance and staff travel.
This move follows Air India’s recent introduction of a similar voluntary retirement and separation scheme for its eligible staff, which will remain open until 16 August. Furthermore, the maximum compensation would reportedly be offered based on the higher of either the ‘Gujarat Pattern’ or the ‘Department of Heavy Industries Pattern.’
Recently, Air India offered two schemes to its non-flying employees. The voluntary retirement scheme or VRS is open to those permanent non-flying employees who have been with Air India for at least five years. The voluntary separation scheme or VSS, on the other hand, is offered to employees who have not yet completed five years of service with the airline.
Vistara, which employs 6,500 people, and Air India, with 18,000 employees, are undergoing workforce rationalisation in anticipation of their merger. Despite the VRS, Vistara will maintain medical insurance and staff travel benefits for affected employees until 31 March, 2025. Post this period, travel benefits will align with the airline’s retired employee policy.
The management of both the airlines had, in recent communications, informed employees about potential job redundancies due to the merger. To mitigate job losses, the Tata Group had decided to offer alternative roles through upskilling and redeployment of employees within other group companies.
