Air India intends to begin a Voluntary Separation Scheme (VSS) for around 600 staff facing redundancy as a result of its merger with Vistara. Despite the workforce modifications, the whole flying crew will be maintained to support the airline’s major operational expansion following the merger.
The idea might be implemented by mid-July, pending board approval.
In recent communications, the airline’s management has notified staff of prospective job reductions as a result of the merger. To offset job losses, the Tata Group is offering alternative positions for employees by upskilling and redeploying them inside other group firms.
In addition to the VSS, the airline intends to provide health and other benefits to affected employees. This conclusion was made following a thorough fitting effort undertaken in partnership with multinational firms such as BCG and Deloitte.
The airline group is accelerating the legal merger process, but operational integration may take longer.
Currently, Air India employs roughly 19,000 people, both contractual and permanent, whereas Vistara employs approximately 6,500.
Air India has streamlined and standardised its operating processes, pay scales, personnel grades, and positions with those of Vistara.
On May 13, 2024, Campbell Wilson, CEO of Air India, and Vinod Kannan, CEO and Chief Integration Officer of Vistara, addressed the employees of both airlines in a phygital town hall meeting. The meeting was attended by around 23,500 employees, who were updated on the status of the transaction and what lies ahead for the amalgamated firm.