NEW DELHI: In preparation for its merger with Air India by the end of this year, Vistara, part of the Tata Group along with Air India, has introduced a voluntary retirement scheme (VRS) for its ground staff. This move aims to streamline the workforce before the merger takes effect.
The VRS will be available to permanent ground staff and non-flying employees who have served Vistara for over five years. Those who choose to opt for the scheme will receive statutory benefits such as gratuity and provident fund, along with additional perks like medical insurance and staff travel privileges.
The compensation under Vistara’s VRS will be calculated based on the more generous of the 'Gujarat Pattern' or 'Department of Heavy Industries Pattern' schemes.
The scheme is set to be in place until August 23, providing employees ample time to decide on their participation. This initiative follows a similar move by Air India, which announced its own voluntary retirement and separation schemes, running until August 16.
Currently, Air India employs 18,000 staff members, while Vistara has 6,500 employees. Eligible employees opting for Vistara’s VRS will continue to enjoy medical insurance and staff travel benefits until March 31, 2025. After this date, staff travel benefits will be governed by the airline’s retired employee policy.
The Tata Group's consolidation strategy includes merging Air India Express and AirAsia India to create a budget airline and combining Air India with Vistara to form a comprehensive full-service carrier. Vistara, a joint venture between Tata Group and Singapore Airlines, holds a 51:49 partnership.
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