Tata group took over Air India’s management on January 27 in a ₹2,700 deal. Air India had introduced VRS which is Voluntary Retirement Scheme for its employees on 1st June. Under this scheme it is reported that already 4500 employees have opted for retirement. The scheme is a part of the Indian carrier’s strategy to rope in fresh young talent on board by hiring new employees in the airline.
Air India Adapting Digital Culture
The executives of Air India reported that the airline is focusing on enhancing efficiency and bringing digital culture to “archaic systems.” Air India needs to transform into a contemporary airline and get rid of the people, systems, and practices that were prevalent in an era where mindsets couldn’t be altered. In order to be customer-focused in the digital age, the airline needs to make system and personnel changes. The VRS also has some rules under which employees who are older than 40 years and have had 20 years of continuous employment, can opt for voluntary retirement. The employees who opted for retirement between June 1 and July 31 are given an ex-gratia amount of ₹1 Lakh.
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Air India Needs Right People With Right Attitude
In order to compete with international rivals, the company needs the right people with the right attitude is what Tata Group’s executives said. In order to handle call centers, customer experience and websites, Air India has been hiring people from Tata Group companies like Tata Consultancy Services and Tata Digital. The company has been working on improving its customer service and execution. In January 2022 when Air India was acquired by Tata group, the airline had 13000 employees and 8000 were permanent ones. By July 1 only 1600 employees had opted for voluntary retirement.
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