Air India's 300 Non-Flying Staff Face Uncertain Future Amid Vistara Merger

Around 300 non-flying employees on fixed-term contracts at Air India, owned by Tata Group, are unlikely to have their service agreements renewed. These employees, who have been with the airline for 10-15 years, failed to secure positions during the merger process with Vistara, sources said.

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Impact of Merger on Employees

The fitment exercise, which evaluates roles and responsibilities, has left many employees without assigned roles. This exercise has been ongoing for several months and is nearly complete. As a result, these employees' contracts are not expected to be renewed.

Air India did not respond to queries regarding this issue. The number of affected FTC employees stands at approximately 300, according to another source. These employees are not eligible for voluntary retirement or separation schemes offered to permanent staff.

Consolidation of Airline Business

Tata Group is also merging Air India Express and AIX Connect, formerly known as AirAsia India. Vistara is a joint venture between Tata Sons and Singapore Airlines, while Air India and its subsidiaries are fully owned by Tata Group. The consolidation aims to streamline operations within the airline business.

The fitment exercise considers factors such as prior experience and performance. Both Air India and Vistara together employ over 23,000 people. The process has revealed many redundancies, particularly in the legacy carrier.

Voluntary Retirement Scheme

On Wednesday, Air India announced a voluntary retirement scheme for permanent employees deemed redundant after the fitment exercise. However, contract employees are not entitled to these schemes and will not receive similar offers.

Tata Group took control of Air India in January 2022. In November of that year, the Group announced plans to consolidate its airline business by merging Vistara with Air India and AIX Connect with Air India Express.

The merger process has led to significant changes within the company. Many long-term employees are facing uncertainty regarding their future with the airline. The consolidation aims to create a more efficient and streamlined operation but has also resulted in job losses.

The conclusion of the fitment exercise marks a significant step in the merger process. Employees who have not secured roles face an uncertain future as their contracts come to an end.