4,500 Air India employees opted for voluntary retirement.

People over the age of 40 who has worked for Air India for at least 20 years can opt for voluntary retirement under the VRS rules.


Tata Group launched the voluntary retirement scheme (VRS) on June 1 in an effort to attract new talent to Air India. According to an Economic Times report, approximately 4,500 employees have chosen to retire under the scheme. In addition, 4,000 more employees will leave the company in the next two years.

According to executives with knowledge of the situation, the airline is working to improve productivity and revitalise ‘archaic systems’ with digital culture. Tata Group is also said to have launched a major recruitment drive in major cities in order to hire new talent.

Air India is also thinking about purchasing Airbus A350 jets and Boeing narrow-body planes to replace its fleet.

“It [Air India] must evolve into a modern airline, shedding systems, processes, and people from an era in which the mindset has been established and cannot be changed. This is a digital era, and the airline’s systems and people must be updated to be more consumer-focused “ET quoted Mark Martin, CEO of Martin Consulting, as saying.

Air India has hired employees from Tata Group companies such as Tata Consultancy Services (TCS) and Tata Digital to manage call centres, websites, and customer service. It is also working to improve execution and customer service, according to the report.

Executives from Tata Group also stated that the airline needed people with the right attitude to compete with international competitors.

People over the age of 40 with at least 20 years of continuous employment can opt for voluntary retirement under Air India’s VRS rules. In addition, those who opted for the VRS between June 1 and July 31 received an ex-gratia payment of Rs 1 lakh.

In January 2022, Tata Group acquired Air India. At the time, the company had approximately 13,000 employees, of which 8,000 were permanent. Business Standard reported on July 1 that 1,600 employees had opted for the VRS up until that point.


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