Air India-Vistara Merger Likely to Affect 600 Staff Positions

Around 600 non-flying staff from Air India and Vistara are expected to be affected by the merger of the two airlines. Efforts will be made to offer job opportunities to these employees within the Air India group and other Tata companies, sources revealed on Wednesday. The merger is anticipated to be finalised by late September or early October.

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Impact on Employees

The merger is likely to impact around 600 employees from both airlines. Sources mentioned that efforts are underway to provide employment opportunities for these individuals within Air India and Tata groups. Those who cannot be accommodated will be offered a voluntary separation scheme package. The exact number of affected staff will be known once the merger is complete.

Fitment Exercise

The fitment exercise, which assesses the roles and responsibilities of staff from both airlines, has been ongoing for several months. This process considers an individual's prior experience, performance, and other factors. According to sources, the fitment process is being conducted fairly and transparently, taking into account that the airline group is becoming more technology-driven.

Assurances from Leadership

On May 12, Air India CEO Campbell Wilson and Vistara CEO Vinod Kannan held a town hall meeting with employees from both airlines regarding the proposed merger. They assured that the fitment or assignment of existing employees into the new structure would be based on merit and competency. "We want to make sure that everyone in Vistara does have a role in the merged entity," Kannan said in January.

Merger Details

The merger was announced in November 2022 and will create one of the largest airline groups. Singapore Airlines will hold a 25.1% stake in Air India once the deal is complete. Vistara is a joint venture between Singapore Airlines and Tata Group. In June, the National Company Law Tribunal (NCLT) cleared the merger, and Singapore's competition regulator CCCS gave conditional approval in March.

Regulatory Approvals

Earlier in September 2023, the Competition Commission of India (CCI) approved the deal with certain conditions. Since Tata Group took over Air India in January 2022, over 9,000 people, including cabin crew, have been hired. As part of consolidating its airline business, Tata Group is also merging Air India Express and AIX Connect (formerly AirAsia India).

Future Plans

Plans for fleet expansion, network growth, and enhanced service over the next few years have been considered while deciding on the organisation structure. Various aspects, including that the airline group is becoming more technology-driven, have been taken into consideration. There will be no job impact for cabin crew and pilots.

The harmonisation of operating manuals across all Tata Group airlines has been completed. The process is still progressing, and more details will emerge as the merger nears completion.