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

Vistara, which currently has around 6,500 employees, will merge with Air India to create a single full-service carrier.

3 minutes reading Last update : July 29, 2024 | 5:11 p.m. IST

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 expected to merge with Air India by the end of this year.

In a message sent to employees on Monday, Vistara said all permanent ground staff who have worked with the airline for five consecutive years are eligible to participate in the VRS programme.

However, the airline clarified that pilots and cabin crew, licensees and employees retiring by March 31 are not eligible for the VRS scheme. It also announced a voluntary separation scheme (VSS) for permanent ground staff with less than five years of experience.

There is no difference between the programmes launched by Vistara and Air India. On July 17, Air India had announced a vocational rehabilitation programme for permanent ground staff with more than five years of experience, and a vocational rehabilitation programme for those with 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 said those who volunteer for the scheme would be given ‘gratuity’, ‘provident fund’ and ‘leave compensation’ as per the company’s existing policy and government rules. The ex-gratia amount would also be calculated and provided as per ‘models’ authorised by the government, it added.

Commercial standard reviewed the message. Vistara did not respond to the newspaper’s request for comment on the matter.

According to sources, around 500-600 employees, out of a total of 18,000 employees of the two carriers, are likely to be retired or retrenched. The carriers are trying to retain as many employees as possible, with some being absorbed by other Tata group companies. However, some positions have become redundant due to the merger, they added.

Airline ground staff perform a variety of ground-based duties, including customer service, baggage handling, security checks, ramp service, and cargo operations. They assist passengers, handle baggage, conduct security checks, and coordinate their activities with flight crews and other airport personnel.

Vistara, which currently has around 6,500 employees, will merge with Air India to create a single full-service carrier. At the same time, Air India’s subsidiaries AIX Connect and Air India Express will merge to form a unified low-cost airline.

Earlier this month, Air India had announced the completion of harmonisation of operational procedures across the four major Tata group airlines, including harmonisation of support manuals. This was a crucial step in the ongoing merger process.

First published: July 29, 2024 | 4:49 p.m. IST