Air India initiates layoffs for 180 non-flying staff. Click to know the reason

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Air India, under the ownership of the Tata Group since January 2022, has initiated layoffs for over 180 non-flying employees in recent weeks. 

The airline cited the inability of these staff members to utilize voluntary retirement schemes (VRS) and reskilling opportunities as the reason behind the layoffs. Efforts have been made since the takeover to streamline the business model, with employees in non-flying functions being reassigned roles based on organizational needs and individual merit. 

Two rounds of VRS were offered as part of the transformational initiative Vihaan.AI, aimed at building a more agile and effective organizational structure to support expansion and ambition. Despite these measures, less than 1% of the employee base could not avail themselves of the offered opportunities, leading to the layoffs. The exact number of layoffs was not disclosed by the airline. 

Meanwhile, domestic air traffic saw a 4.8% increase annually, reaching ₹1.26 crore last month. while over 1.55 lakh passengers were affected by flight delays, Air India’s market share rose to 12.8% in February, reflecting ongoing developments in the aviation industry.

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