The merger of Air India and Vistara is projected to impact around 600 employees from both airlines. Nonetheless, efforts will be made to find employment for these individuals within other divisions of the Tata Group and the Air India Group. Sources disclosed this information on Wednesday. The Tata Group owns both of these loss-making airlines, which together employ over 23,000 people. In an effort to enhance its aviation business, the Tata Group is planning to merge its airline operations. According to sources familiar with the merger plan, the integration of Air India and Vistara is likely to affect approximately 600 employees, particularly those engaged in non-aviation roles.
Sources indicated that efforts will be made to offer employment to those affected by the merger process within Air India and other Tata Group companies. For those who cannot be accommodated, a voluntary separation scheme package will be introduced. The merger process is anticipated to be completed by the end of September or early October, according to sources. The exact number of affected employees will only be determined once the process is finalised.
There has been no response from Air India in this regard. The process of implementing the merger has been going on for the last few months. During this, the employees of the airlines are being selected keeping in mind their past experience, performance and other factors. Sources clarified that the merger process will not have any effect on the crew members and pilots of both the airlines.
This development comes after a thorough fitment exercise was conducted across both airlines, with guidance from global firms like BCG and Deloitte. The airline group is currently accelerating the legal merger process, though the operational integration may require more time. The airline has aligned and streamlined operational processes, pay scales, employee grades, and roles with those of Vistara.
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