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Tuesday, October 26, 2021

Air India Divestment: Tata Sons will not fire Air India employees for one year, know what will happen next?

VRS will have to be offered if Air India employees are fired after one year.

Tata Group has offered Rs 18,000 crore to buy Air India. The government had kept a price of Rs 12,906 crore. Air India currently has 12,085 employees. Of these, 8,084 are permanent employees and 4,001 employees are working on contract. Apart from this, there are 1434 employees in Air India Express. The question is, what will happen to the employees after the acquisition of the airlines by the Tata Group?

VRS will have to be given if employees are fired after one year

The central government has made it clear that Tata Sons, the successful bidder for Air India, will have to retain all the employees of the airline for one year. After this period if she wants to remove the employees then she has to offer VRS (Voluntary Retirement Scheme). Civil Aviation Secretary Rajiv Bansal said on Friday that Tata Sons, the winner of Beed for Airlines, will retain all employees of Air India, which means the company will not lay off any employees for a year. Thereafter, during the second year, if the company wants to remove an employee, then VRS will be offered to him.

Air India returned home, Tata Sons did Air India for 18 thousand crores, Ratan Tata tweeted ‘Welcome Back’

Government sold its entire stake in Air India

The government has sold its 100% stake in Air India and Air India Express. Earlier in 2018 also the government had unsuccessfully tried to sell it. The government was not selling the entire stake then and wanted to keep 24 per cent with itself. The government will get cash of Rs 2700 crore from the sale of Air India. This deal will be completed by this December 2021.

Tata Sons has to pay so much debt

According to DIPAM secretary Tuhin Kant, Air India’s debt stood at Rs 61562 crore by the end of August 2021. Out of this, a loan of Rs 46262 crore will be handed over to the Special Purpose Vehicle Air India Assets Holding i.e. Tata Sons has to repay the loan of Rs 15300 crore. The new owner of Air India has got 4400 domestic and 1800 international landing and parking slots in the country and 900 slots abroad.

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