The Tata Group-owned India’s leading international airline Air India reportedly plans for a major reduction in employee headcount in the run-up to its merger with another Group carrier, Vistara.
The staff reduction, expected to be around 500-600, will be done among the airline’s ground staff.
Air India introduced a voluntary retirement scheme (VRS) and a voluntary separation scheme (VSS) for its ground staff, media reports said.
This is the third VRS exercise since the privatisation of Air India two years ago.
In a staff notification on Wednesday, the airline said the VRS scheme applies to employees with a minimum of five years of continuous service and the VSS to those with less than five years of employment with Air India, the Hindu Businessline reported.
The schemes will run until August 16 and apply to permanent ground staff, excluding pilots, cabin crew, and any licensed post holders.
Currently, the Tata-owned airline has over 18,000 employees.
India’s National Company Law Tribunal gave its nod to Vistara’s merger with Air India in June, and the two airlines are targeting the end of the year to complete the integration.
Employees have been informed of their new roles in the merged entity following a fitment exercise.
However, the carrier may have to let go of around 500-600 of its staff, though attempts are still being made to find suitable roles for them within the airline and other Tata group companies, the report said.
