After Air India, Vistara announces VRS scheme for permanent ground staff | Company News


Vistara

Vistara, which currently has about 6,500 employees on its rolls, is being merged into Air India to create a single full-service carrier.

Vistara on Monday announced a voluntary retirement scheme (VRS) for its permanent ground staff, two weeks after Air India announced a similar scheme for its employees.


Vistara, a 51:49 joint venture of the Tata Group and Singapore Airlines, is scheduled to merge into Air India by the end of this year.


In a message sent to employees on Monday, Vistara stated that all permanent ground staff who had worked at the airline for five continuous years can take part in the VRS scheme.


However, it clarified that pilots and cabin crew members, any licensed role holders, and employees retiring by March 31 next year were not eligible for the VRS scheme. It also announced a voluntary separation scheme (VSS) for permanent ground staff who have less than five years of experience.


There was no difference between the schemes initiated by Vistara and Air India. Air India had on July 17 announced a VRS for permanent ground staff holding more than five years of experience, and a VSS for those who had less than five years of service.


While the deadline for Air India’s schemes is August 16, the deadline for Vistara’s schemes is August 23. Vistara on Monday stated that those who volunteer for this scheme would be provided “gratuity”, “provident fund” and “encashment of leave” as per the existing company policy and government rules. The ex-gratia amount would also be calculated and provided by government-authorised “patterns”, it added.


Business Standard has reviewed the message. Vistara did not respond to the newspaper’s request for a comment on this matter.


Sources stated that approximately 500-600 employees, out of a total of 18,000 from the two carriers, are expected to be retired or separated. The carriers are making efforts to retain as many employees as possible, with some being absorbed into other Tata Group companies. However, certain positions have become redundant due to the merger, they added.


Ground staff in an airline handle various tasks on the ground, including customer service, baggage handling, security checks, ramp service, and cargo operations. They assist passengers, manage luggage, perform security screenings, and coordinate with flight crews and other airport personnel.


Vistara, which currently has about 6,500 employees on its rolls, is being merged into Air India to create a single full-service carrier. Concurrently, Air India’s subsidiaries, AIX Connect and Air India Express, are merging to form a unified low-cost airline.


Earlier this month, Air India had announced the completion of harmonising operating procedures across key functions for the four Tata Group airlines, including the alignment of supporting manuals. This was a crucial step in the ongoing merger process.

First Published: Jul 29 2024 | 4:49 PM IST



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