Air India-Vistara Issues On The Mend? Airlines Lay Out Phased Plan For Employees: Report

Employees of Vistara and Air India will reportedly be integrated in phases amid mounting concerns raised by employees of the Tata Group airline.

What Happened: As part of Vistara’s merger with Air India, employee transition will commence in phases from June, according to CEOs Campbell Wilson and Vinod Kannan’s town hall address on Monday, NDTV Profit reported.

The transition will align with the end-state roles and structures, with Vistara staff being deputed to Air India through secondment closure. However, a minimum viable team will remain at Vistara to ensure business continuity until the air operator certificate is surrendered.

People integration is highlighted as a key aspect of the merger, with an integrated pilot upgrade sequence established at the group level to facilitate career advancement opportunities. Around 120 pilots have been seconded between Vistara and the Air India group.

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To ensure functional integration, “myIDTravel” access has reportedly been extended to employees across both Air India and Vistara.

The merger process is due for completion by the end of this year, with progress noted on various fronts including antitrust approvals in multiple regions and applications filed for Singapore Airlines’ investment in the merged entity.

In terms of leadership, Wilson will continue as CEO and managing director of Air India Group, while Kannan will retain the CEO position at Vistara and serve as Chief Integration Officer. Aloke Singh will also remain CEO of Air India Express.

Both airlines have seen increasing unrest among employees, including cabin crew and pilots, involving pay, allowances and flying hours. Last week around 100 Air India Express flights were cancelled after several cabin crew members called in sick. The matter was later resolved through the intervention of the labour regulator.

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Posted In: M&AAir IndiaTata GroupVistara