Air India has come up with another voluntary retirement scheme for its employees – its second in one year. The latest move covers thousands more employees, who will be eligible for incentives over and above the settlement amount, should they choose to take the offer. The airline is simultaneously building a new workforce and removing redundant roles as it embarks on a transformation journey.
Another scheme
Air India has offered some of its employees another chance to opt for a voluntary retirement scheme (VRS) as it moves ahead with its workforce optimization plan. Reports of a second such scheme first circulated in November 2022, with Air India’s focus on hiring new employees and changing the working culture within the company.
Photo: Boeing
According to Mint, the new VRS has been offered to all permanent general cadre officers who are at least 40 years old and have been with Air India for a minimum of five years in continued service.
There’s also an incentive for those applying sooner. Employees applying between March 17th and April 30th will also be given an ex-gratia amount as a one-time benefit. Some eligible employees applying by March 31st will get an additional ₹100,000 (around $1,200). Mint also quotes from an announcement by Air India to its employees, which said,
“There has been a request from employees for extending the additional benefit of voluntary retirement to other permanent employees as well.”
Previous scheme
Air India first announced its VRS scheme in the middle of last year. In June, in an attempt to trim the headcount at the organization, the airline offered this scheme to eligible employees giving additional benefits to lowering the retirement age for some departments. Around 1,500 employees opted for the scheme.
Photo: BoeingMan777 / Shutterstock
When the Tata Group acquired the carrier, it had around 13,000 employees, of which 8,000 were permanent. With thousands taking voluntary retirement and a further 4,000 set to retire in a couple more years, the airline’s workforce will look significantly different from when it was a state-run carrier. The VRS scheme, however, is not offered to pilots and cabin crew.
Hiring new talent
Air India has been aggressively hiring talents across all departments, from flying crew to all levels of management positions. In the last few months, several top to mid-level executives have joined the company for roles in departments like engineering, network planning, and revenue management. Many have made a shift from other airlines in India, lured by the growth prospects of an expanding Air India.
It remains to be seen how many employees will choose to take the second voluntary retirement scheme this year and what the revised headcount at Air India will be following all the new recruitment and those retiring at the end of this year.
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Source: Mint
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Air India
- IATA/ICAO Code:
- AI/AIC
- Airline Type:
- Full Service Carrier
- Hub(s):
- Delhi Indira Gandhi International Airport
- Year Founded:
- 1946
- Alliance:
- Star Alliance
- CEO:
- Campbell Wilson
- Country:
- India