Air India, now under the ownership of the Tata Group following its acquisition in January 2022, has commenced layoffs for more than 180 non-flying employees in recent weeks.
The airline has attributed these layoffs to the failure of certain staff members to participate in voluntary retirement schemes (VRS) and reskilling initiatives introduced as part of the company’s restructuring efforts. Since the ownership transition, Air India has been focused on streamlining its business operations, with non-flying employees being reassigned roles based on organizational requirements and individual qualifications.
As part of the transformational program Vihaan.AI, which aims to create a more agile and efficient organizational structure to support growth, two rounds of VRS were offered to employees. Despite these opportunities, less than 1% of the workforce opted for voluntary retirement, necessitating the layoffs. However, the airline has not disclosed the exact number of employees affected by the recent layoffs.
While Air India undertakes these internal changes, India’s domestic air traffic has witnessed a 4.8% annual increase, reaching ₹1.26 crore last month. Despite challenges such as flight delays affecting over 1.55 lakh passengers, Air India has maintained a market share of 12.8% in February, showcasing ongoing developments in the aviation sector.
