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Business / Tue, 09 Jul 2024 The Financial Express

Air India, Vistara merger may see 600 employees losing their jobs

Air India plans to introduce a voluntary separation scheme (VSS) for around 600 employees whose roles are expected to be redundant after the merger of Vistara with it. In the recent past, Air India’s management has communicated to the employees that a number of jobs might become redundant after the merger. At present, Air India has some 19,000 employees (both contractual and permanent), while Vistara has around 6,500. Apart from the VSS, the airline will extend health and other benefits to the affected employees, sources said. Meanwhile, the airline group is hurrying up to close the process for the legal merger, whereas the operational assimilation might take some more time.

Air India plans to introduce a voluntary separation scheme (VSS) for around 600 employees whose roles are expected to be redundant after the merger of Vistara with it. However, the entire flying crew will be retained as the airline plans massive operational expansion post-merger, sources said.

Air India did not respond to an email query.

In the recent past, Air India’s management has communicated to the employees that a number of jobs might become redundant after the merger. To minimise job losses, the Tata Group is trying to offer some employees new roles by upskilling them and placing others in different group companies.

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“The scheme might get implemented by the middle of this month. The board will deliberate on it,” sources said.

At present, Air India has some 19,000 employees (both contractual and permanent), while Vistara has around 6,500.

Apart from the VSS, the airline will extend health and other benefits to the affected employees, sources said.

Also read: Tata Group airlines move a step closer to merger

The development comes after a comprehensive fitment exercise was conducted across the two airlines in consultation with global firms like BCG and Deloitte. Meanwhile, the airline group is hurrying up to close the process for the legal merger, whereas the operational assimilation might take some more time.

Besides, the airline has streamlined and aligned operational processes, pay scales, employee grades, and roles with Vistara.

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