Air India and Vistara merger to take place later this year
A company is telling its employees that they will not be able to retain their jobs in the coming days, so they have to opt for the voluntary retirement route i.e. Voluntary Retirement Scheme (VRS). This is nothing short of an earthquake. Now the VRS scheme will also apply to Vistara, the Tata group airline, because it is set to merge with Air India.
Even when Tata Group acquired Air India, it introduced the VRS scheme for Air India employees in 2022. Then, around 1,500 employees left the company. While earlier this month, Air India launched its second VRS scheme. Now Tata Group has introduced this scheme for Vistara.
These employees will be affected
This VRS scheme of Vistara will affect the non-flying staff working in the company. Apart from the ground staff, this includes employees doing other jobs. This VRS scheme of Vistara is for permanent non-flying employees. Currently, the total number of Vistara employees including permanent and contractual employees is around 6,500. Whereas the total number of employees of Air India and Vistara is around 25,000.
read this too
If any Vistara employee wants to leave the company on their own (VSS) or wants to take VRS, they can submit their application to the company till August 23. Only those employees whose service period has completed 5 years can apply for the VRS scheme. While VSS is for employees who have not yet completed five years of service with the airline.
Vistara’s VRS and VSS scheme is similar to similar schemes launched by Tata Group-owned Air India earlier this month. These schemes will not affect pilots, crew members and other authorised employees of the company.
so many employees can be out
Vistara was launched in 2015. It is a joint venture between Tata Group and Singapore Airlines. It is likely to merge with Air India later this year. Singapore Airlines will then have up to 25 percent stake in the newly integrated Air India, of which it currently owns 49 percent in Vistara.
While the company has not said how many employees will be affected by the plan, there is a possibility that the number could exceed 600. Tata Group is trying to save as many employees as possible or relocate them to other companies in the group.
