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Latest Business Updates: Air India on Wednesday announced a Voluntary Retirement Scheme (VRS) for its regular staff amid downsizing as part of the merger process with Vistara. The Voluntary Severance System (VSS) was introduced. Notably, that development took place before the Vistara merger. The company offered employees the option to apply for VRS if they have worked for the company for 5 years and VSS if they have less than 5 years.
Although Air India confirmed this, it did not disclose the details of the two systems. A month is set aside to apply for these two systems. With Tata Group’s acquisition of Air India in January 2022, this will be the third time VRS will expand to permanent employees.
The company needs fewer employees for daily operations. Air India said all permanent ground staff, including cabin crew other than pilots, and all license holders are eligible. The window for participation in VRS, and VSS is open until August 16.
Currently, Air India has about 19 thousand employees (contractual, and permanent) and Vistara has about 6500 employees. According to industry sources, VRS will affect 500-600 workers. In March this year, Air India retrenched more than 180 non-flying staff over the past few weeks as employees were unable to take advantage of Voluntary Retirement Schemes (VRS) and retraining opportunities.
