In a significant development following the merger announcement of Air India and Vistara, approximately 600 non-flying personnel are expected to be affected by the consolidation, sources confirmed on Wednesday. Efforts are underway to facilitate job placements for these employees within the broader Tata Group and Air India organisations. The merger, involving Tata Group's ownership of both airlines, will reshape their combined workforce of over 23,000 employees.
Sources familiar with the merger revealed that the integration process could impact around 600 employees primarily in non-aviation roles. Plans include offering alternative roles within Air India or other Tata Group entities. Those unable to find suitable placements will have the option of a voluntary separation scheme, according to sources briefed on the matter. The final count of affected employees will be determined post-merger completion, anticipated by late September or early October.
Air India declined to comment on the matter at this time. The fitment process, a crucial step preceding the merger, has been ongoing for several months, evaluating employees based on experience, performance, and other criteria. Notably, cabin crew and pilots are expected to remain unaffected by the merger, ensuring continuity in operational roles.
The merger strategy includes aligning organisational structures and enhancing technological integration, reflecting a shift towards a more technologically driven approach. A recent town hall meeting held by Air India CEO Campbell Wilson and Vistara CEO Vinod Kannan assured employees of a fair fitment process based on merit and competence.
Looking ahead, the merger aims to consolidate operations, expand fleet capabilities, and enhance service offerings over the coming years. With Singapore Airlines set to hold a 25.1% stake post-merger, the consolidation positions the entity as a major player in the aviation industry.
Earlier approvals from regulatory bodies like the National Company Law Tribunal (NCLT) and the Competition Commission of India (CCI) have paved the way for the merger's progress. Since Tata Group's acquisition of Air India in January 2022, significant strides have been made, including the integration of subsidiaries like Air India Express and AIX Connect.
The harmonisation of operational manuals across all Tata Group airlines marks another milestone in streamlining processes. Vinod Kannan emphasised in January that the merger is geared towards growth rather than cost-cutting, underscoring its strategic importance in expanding market presence.
In conclusion, while the merger will bring about workforce adjustments, Tata Group remains committed to minimising disruptions and leveraging synergies to strengthen its aviation portfolio.
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