An estimated 4,500 Air India employees have opted for the voluntary retirement scheme (VRS) offered by the new management, stated people with an understanding of the matter.
This is a key part of the Tata Group’s strategy to invest fresh energy by hiring new talent across operations in the airline. It’s operating on revamping the airline to cut costs, improve productivity and revitalize archaic systems with digital culture, executives stated.
Air India had about 13,000 employees
When it was received, Air India had approximately 13,000 employees, of which 8,000 were permanent staff and the rest contractual.
“This is work in progress and we all are in for the long transformation haul,” stated one of the people cited above. “We are also purchasing topnotch aircraft and we also require topnotch talent with international experience to manage the new engines and machines.” Fleet up-gradation, more destinations, world-class hospitality inflight or on the ground, and many such places are being worked upon,” the person stated. The Indian carrier is declared to be considering the buying of Boeing’s narrow-body planes alongside Airbus A350 jets as part of fleet renewal.
Air India declined to comment on what it told were internal problems. Tata executives stated Air India required talent with the right attitude and aptitude to compete with international rivals.
Air India declared the VRS for permanent employees
Air India declared the VRS for permanent employees of Air India in June and relaxed the age eligibility criteria to 40 from 55. In addition, the company declared an ex-gratia payment for employees who apply for voluntary retirement between June 1, 2022, and Jul 31, 2022.
“We are right-sizing the organization, roping in new talent, apart from upgrading the quality of aircraft and all this needs talent with the right skills and abilities to build a superior airline,” told an executive. “It is a work in progress and requires patience as we do that.”
Also, about 4,000 employees are to retire in the next two years, officials told. The group has established a major recruitment drive in the top metros as part of its plan.
Air India has been appointing new hires as well as taking on senior talent from group companies such as Tata Consultancy Services NSE -0.31 % (TCS NSE -0.31 %) and Tata Digital to manage customer experience, ground handling, the website, call centers, and several other digital initiatives, senior group executives informed reporters. Execution, design, and customer service are also being reworked, they stated.
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Some senior Air India workers have reportedly complained of feeling excluded. However, executives stated the group has always been sensitive and fair to employee needs and welfare and all initiatives are with an eye on the future.
“We respect all employees in the airline and the turnaround will be achieved with the help of all of them,” one of them told.
The Tata Group has to hire fresh talent to confirm that the transformation is successful, stated Mark Martin, founder, and CEO of aviation consultancy Martin Consulting “Air India has to appeal to the upwardly mobile next-gen millennials,” he told
“It has to become a modern airline and shed systems, processes, and people from an era where the mindset has been set and cannot be changed. This is a digital period and the airline has to be revamped in terms of systems and people to be consumer-focused.”
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