Tata Group-promoted Air India plans to smooth out issues related to employee fitment as the process for the merger with Vistara is expected to commence on Monday.
The integration committee, which includes Vistara and Air India managements, has identified a number of jobs that will be duplicated after the merger.
Air India has over 17,000 employees, while Vistara has some 6,500.
Under the structure, some employees will be retained at Air India, whereas others might be placed at Air India Express.
When completed, the merger will give SIA a 25.1% stake in an enlarged Air India Group.
Tata Group-promoted Air India plans to smooth out issues related to employee fitment as the process for the merger with Vistara is expected to commence on Monday. The integration committee, which includes Vistara and Air India managements, has identified a number of jobs that will be duplicated after the merger.
Air India has over 17,000 employees, while Vistara has some 6,500. At a recent town hall meeting, employees were informed that a number of jobs might become redundant after the merger. To avert job losses, the Tata Group plans to offer some employees new roles by upskilling them, and place others in different group companies.
Air India and Vistara did not respond to requests for comment.
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Air India had earlier hired consultants to map out the new structure under which the merged entity will operate. Under the structure, some employees will be retained at Air India, whereas others might be placed at Air India Express. Some employees have expressed concerns over their career progression and seniority levels in the new structure.
On Monday, Air India CEO Campbell Wilson and Vistara chief executive Vinod Kannan will address employees in a joint town hall meeting.
It is expected that the formal merger proceedings will kick off on Monday. The merger — announced in November 2022 — is awaiting foreign direct investment and other regulatory approvals. The matter is pending before the NCLT (National Company Law Tribunal), followed by clearances from the ministry of civil aviation and the DGCA. Clearance on foreign investment from Singapore Airlines is awaited from the DPIIT (Department for Promotion of Industry and Internal Trade). Last year, the Competition Commission of India approved the merger.
When completed, the merger will give SIA a 25.1% stake in an enlarged Air India Group.
