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

Approximately 300 non-flying employees on fixed-term contracts (FTC) 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, did not secure positions during the recent fitment exercise, sources revealed.

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The fitment exercise, which evaluates roles and responsibilities of staff from both airlines, has been ongoing for several months. It considers factors such as prior experience and performance. The merger of Vistara with Air India has led to many redundancies, especially within the legacy carrier.

Merger and Redundancies

Tata Group is consolidating its airline business by merging Air India Express and AIX Connect (formerly AirAsia India). Vistara is a joint venture between Tata Sons and Singapore Airlines, while Air India, Air India Express, and AIX Connect are fully owned by Tata Group.

The fitment exercise has resulted in many employees being found redundant or surplus. On Wednesday, Air India announced a voluntary retirement scheme (VRS) and a voluntary separation scheme (VSS) for its permanent employees affected by this process.

Impact on Fixed-Term Contract Employees

However, FTC employees are not eligible for these schemes. "Being on contract, these employees are not entitled to schemes like VRS or VSS," said a source. This means they will not receive offers similar to those given to permanent staff who did not find positions after the fitment exercise.

Air India did not respond to queries regarding the issue. The number of FTC employees who may not get their contracts renewed stands around 300, according to another source.

Background of the Consolidation

Tata Group took control of Air India in January 2022. In November that year, they announced the consolidation of their airline business by merging Vistara with Air India and AIX Connect with Air India Express. This move aims to streamline operations under a full-service carrier and a low-cost airline model.

The two full-service carriers, Air India and Vistara, together employ over 23,000 people. The fitment exercise has revealed significant redundancies, particularly in the legacy carrier.

The affected FTC employees have been working in various departments at Air India for over a decade. Despite their long tenure, they have not been assigned roles during the fitment process, which is nearly complete.

The merger aims to create a more efficient airline operation by combining resources and eliminating overlapping roles. However, this has led to job losses among long-serving FTC employees who were unable to secure new positions within the merged entity.

The consolidation of Tata Group's airline business is part of a broader strategy to strengthen its presence in the aviation sector. By merging its various airline operations, Tata Group aims to create a more competitive and streamlined airline service.

This restructuring process highlights the challenges faced by long-term contract employees in securing job stability amidst corporate mergers and consolidations. As Tata Group continues to integrate its airline operations, further changes in staffing and organisational structure are expected.