Vistara launched a voluntary retirement plan (VRS) for its permanent ground crew on Monday, only two weeks after Air India did the same. Vistara, a 51:49 joint venture between the Tata Group and Singapore Airlines, is set to combine with Air India by the end of the year.

Vistara indicated in a statement to workers on Monday that all permanent ground crew who have worked for the airline for five years or more are eligible for the VRS scheme.

However, it noted that the VRS plan did not apply to pilots and cabin crew members, any licensed job holders, or staff departing by March 31 next year. It also launched a voluntary separation scheme (VSS) for permanent ground workers with fewer than five years of service.

There was no difference between the plans launched by Vistara and Air India. On July 17, Air India announced a VRS for permanent ground crew with more than five years of experience and a VSS for individuals with fewer than five years of service.

The deadline for Air India's plans is August 16, but the deadline for Vistara's initiatives is August 23. Vistara declared on Monday that people who volunteer for this plan will get "gratuity", "provident fund", and "encashment of leave" in accordance with existing corporate policy and government regulations. The ex-gratia payment would likewise be determined and distributed using "patterns" approved by the government, it added.

According to sources, around 500-600 employees out of a total of 18,000 at the two airlines are anticipated to retire or be separated. The carriers are attempting to retain as many personnel as possible, with some being integrated into other Tata Group enterprises. However, the merger has made certain posts superfluous, they added.

Customer service, luggage handling, security checks, ramp service, and cargo operations are among the duties of an airline's ground personnel. They help passengers, handle bags, conduct security checks, and communicate with flight crews and other airport workers.

Vistara, which has around 6,500 workers, is being amalgamated with Air India to form a single full-service carrier. Concurrently, Air India's subsidiaries, AIX Connect and Air India Express, are combining to establish a single low-cost airline.

Earlier this month, Air India announced the completion of harmonizing operational procedures across critical services for all four Tata Group airlines, including the alignment of supporting manuals. This was an important milestone in the continuing merger process.