About 2,100 employees are eligible for VRS this time, said people aware of the matter.
According to the VRS memo, a copy of which was seen by ET, permanent employees who are above 55 years of age or who have completed 20 years of service can opt for the VRS package.
The airline has also allowed general category officers in this round- along with clerical staff and unskilled workers. Pilots and cabin crew don’t fall within the ambit of the VRS scheme.
“Following last year’s provision of the VRS scheme, many of you had asked whether there will be another round and to extend it to other staff categories,” Air India CEO Campbell Wilson said in a note to staff.
The employees will also be provided with ₹1 lakh as an incentive over and above the settlement amount.
Workforce rationalisation has been a crucial part of Air India’s turnaround plan. Over 1,600 employees at the airline had opted for voluntary retirement under the previous scheme that was announced on June 1. That accounted for 22% of its permanent staff (around 7,000). The airline has a total strength of around 10,800, which also includes 3,800 employees on contract.While the company has announced a VRS, simultaneously it is now on a recruitment drive and is conducting walk-in interviews for cabin crew in Kolkata, Mumbai, Bengaluru, and Hyderabad.
It is also poaching hired mid- and senior-level executives into specialised departments like engineering, network planning and revenue management from rivals.
With investment in aircraft and technology, the group hopes to make the airline efficient and profitable. “If you have to get an edge over others you have to break away from the past,” a former senior executive remarked. The VRS scheme would make the airline leaner and cut down on establishment costs, he added.
