Key to TATA’s strategy to infuse fresh energy into Air India

The voluntary retirement scheme (VRS) scheme floated by the new management soon after Tatas returned to the helm of Air India has found an estimated 4,500 takers.

The airline rolled out a voluntary retirement scheme (VRS) in June this year for some permanent employees including cabin crew for the first time. These employees, as per VRS guidelines, must be above 55 years of age or have completed two decades of service.

The new management is in talks to purchase several new aircraft.

Air India had about 13,000 employees, of which 8,000 were permanent staff and the rest contractual.

Under Air India’s VRS rules, people older than 40 and 20 years of continuous employment can opt for voluntary retirement. The company also gave an ex-gratia amount of Rs 1 lakh to those who opted for the VRS between June 1 and July 31.

Tata executives said Air India needed talent with the right attitude and aptitude to compete with international rivals. Air India announced the VRS for permanent employees of Air India in June and relaxed the age eligibility criteria to 40 from 55. In addition, the company announced an ex-gratia amount for employees who apply for voluntary retirement between June 1, 2022, and Jul 31, 2022.

“We are right-sizing the organisation, roping in new talent, apart from upgrading the quality of aircraft and all this needs talent with the right skills and abilities to build a superior airline, it is work in progress and needs patience as we do that.”

Tata Executive.

Tata Groups’s strategy is to infuse fresh energy by hiring new talent across operations in the airline. As part of its cost-saving measures, it’s working on revamping the airline, improving productivity and revitalising archaic systems with digital culture, the daily report.

Tata Group is infusing fresh energy by hiring new talent across operations in the airline.

The Indian carrier is reportedly considering purchasing Boeing’s narrow-body planes alongside Airbus A350 jets as part of fleet renewal. Additionally, fleet upgradation, more destinations, world-class hospitality inflight or on the ground and many such areas are being worked upon.

Air India has been appointing new hires as well as taking on senior talent from group companies such as Tata Consultancy Services (TCS) and Tata Digital to handle customer experience, ground handling, the website, call centres and several other digital initiatives. Execution, design and customer service are also being reworked.

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