Tata-Owned Air India Lays Off Over 180 Non-Flying Employees

In recent weeks, Tata-owned Air India has laid off more than 180 non-flying employees who were unable to utilize voluntary retirement schemes (VRS) and re-skilling opportunities, according to PTI reports.

Streamlining Operations Under Tata Ownership in Air India:

Since Tata’s takeover in January 2022, Air India has undertaken efforts to streamline its business model. The focus has been on aligning organizational needs with individual merit, as stated by a spokesperson.

A comprehensive process has been undertaken over the past 18 months to assess the suitability of all employees. Despite offering multiple VRS and reskilling opportunities, around one percent of the employee base had to part ways.

Honoring Contractual Obligations with Air India:

The company assures that it is honoring all contractual obligations. While the exact number of employees laid off was not disclosed, PTI reported it to be slightly over 180.

As part of the multi-year transformational initiative Vihaan.AI, Air India aims to build an agile and effective organizational structure aligned with its business model to support expansion and ambition.

Rise in Domestic Air Traffic:

Despite the restructuring, domestic air traffic witnessed a 4.8 percent annual increase to ₹1.26 crore last month. However, flight delays affected more than 1.55 lakh passengers during the same period, as reported by PTI.

In February, Air India’s market share rose to 12.8 percent, while that of IndiGo marginally dipped to 60.1 percent from 60.2 percent in January, indicating shifts in the competitive landscape.

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