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What will happen to Air India employees after Tata Sons acquisition?

Air India has 12,085 employees while Air India Express has 1,434

Air India sets up high-level inquiry after pilot alleges sexual harassment Representational Image | Salil Bera

The new owners of Air India will have to retain all the employees of the national carrier for at least one year post which they can offer a VRS.

The gratuity, pension fund and post-retirement medical benefits of existing and past employees too would be honoured by the new owner, Civil Aviation Secretary Rajiv Bansal said.

Tata Sons has emerged as the winning bidder for Air India with the government accepting its Rs 18,000 crore offer to acquire 100 per cent of the debt-laden state-run carrier.

Briefing reporters, Department of Investment and Public Asset Management Secretary Tuhin Kanta Pandey said the outstanding dues of employees of Rs 1,332 crore as per the report of Justice Dharmadhikari would be paid by the government. 

Air India has 12,085 employees—8,084 permanent and 4,001 contractual. Besides, Air India Express has 1,434. In the next five years, about 5,000 permanent employees will be retiring, he said.

Free travel by government employees on Air India flights will stop post-handover, free passage to retired employees will be as per industry practice. 

"The restrictions that government employees will have to travel only through this will go. The passage rights will be as per industry practice, there is nothing that we are mandating," Pandey said.


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