Air India is ready to put forth a second Voluntary Retirement Scheme(VRS) for its employees after having done so before in June 2022.
Having taken over the airlines in January 2022, the Tata Group wishes to increase its younger workforce by offering voluntary retirement to those who were above the age of 40 with continuous experience working for 20 years.
The scheme was first introduced in June 2022. Back then 4500 employees were offered retirement out of which 1500 had accepted retirement under this particular scheme. It has been estimated that 4,000 more people could retire in the next two years. For individuals who choose the VRS between June 1 and July 31, an ex-gratia sum of Rs. 100000 was made available.
According to a report made public by Economic Times, individuals who are more technologically savvy as well as those with the correct mentality to compete with competing enterprises on a worldwide level would be hired in order to keep up with the standards of rival airlines.
The report further mentioned that the staff is being hired from Tata Consultancy Services (TCS) as well as Tata Digital to work in call centers, the customer service sector, and so on.
At the time of acquisition, there were 13,000 employees, and 8,000 was a part of the permanent workforce.
Air India market share to reach 30%.
Air India will both lease and buy 30 additional planes to expand its fleet and plans to reserve a 30% market share both domestically and internationally. Tata Sons’ ambitions to combine all of its airlines include a merger of Air India, Vistara, and Singapore. It hasn’t, however, been able to increase its market share. There had been a noticeable fall. Market share was 10% in January 2022 and decreased to 7.5% in June.
Under the management of Tata Group, according to a report published by the Directorate General of Civil Aviation (DGCA), there has been a marked improvement in the functioning of the airline. The report mentioned that the load factor had reached 80% on its domestic flights as compared to 60% in the previous year when it was under government control.
(With inputs from various media sources.)
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