Tuesday, June 18, 2024

Air India Implements Second Round Of Voluntary Retirement Scheme After Takeover By Tata Group

By Staff Correspondent

Air India, the state-owned airline now owned by the Tata Group, has announced a second round of an early retirement scheme for employees in less than a year since the takeover. The voluntary retirement scheme (VRS) was reported on 4 November 2022 as part of the airline’s plan to trim staff costs and bring in a younger workforce.

This second round is being offered to all permanent general cadre officers who are at least 40 years of age and have completed at least five years of continuous service at Air India, including clerical and unskilled employees.

Employees who apply from 17 March to 30 April will receive an ex-gratia amount as a one-time benefit. Additionally, eligible employees who apply until 31 March receive ₹1 lakh in addition to the ex-gratia amount. Air India launched the first phase of VRS in June 2022, offered to 4,500 eligible employees above 40 years of age and who have completed 20 years of continuous employment. The first VRS was accepted by 1,500 employees.

The airline has been looking to add new talent in line with its transformation plan, as it plans to achieve accelerated growth in domestic and international aviation markets. In addition, Air India is trying to reduce the multiplicity of roles and bring in more efficiency in manpower.

It aims to achieve a 30% share in domestic and international markets in the next five years. Last month, Air India placed a massive order of 470 aircraft with an option to extend the order size to 840. Air India, along with AirAsia India, Vistara, and Air India Express, are under the umbrella of Tata Sons, the diversified Tata Group holding company.

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