Here’s What in Store For Air India Employees as Maharaja Returns to Tata Sons

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Air India disinvestment: Finally, the Maharaja returned to his owners after a long hiatus of 68 years as India’s national carrier was sold to Tata Sons on Friday. The Tata Group won the bid to acquire the national carrier. However, Tata will pay Rs 18,000 crore to the central government to acquire the debt-ridden airline. At least 15 per cent of the total money will go to the government and the rest will help pay off the debt. Also Read – Air India Employees For 1 Year, VRS In Second Year: Center Lists Conditions For Tata Sons

Giving more details, Secretary DIPAM said that the process was done in a transparent manner keeping in mind the confidentiality of the bidders. He also said that the bidders have agreed to all the terms and conditions and five bidders were disqualified as they did not fulfill the criteria. Also Read – Air India Tata Sons Deal: ‘Historic Moment! President N Chandrasekaran promises ‘world class airline’

At present, Air India has a total of 12,085 employees, of which 8,084 are permanent and 4,001 are on contract. At the same time, Air India Express has 1,434 employees. Also Read – ‘Welcome Back, Air India’: Ratan Tata Tweets As Tata Group Wins Bid For National Carrier After 68 Years

As per the condition set by the Centre, the Tata group will retain the existing employees of Air India for the first year and in the second year, they will see who to retain and may even grant Voluntary Retirement (VRS) to some employees.

It is to be noted that the central government had earlier agreed to bear the cost of liquidation loss due to transfer from company-owned trusts to Employees’ Provident Fund Organization (EPFO), the employees in the Central Government Health Scheme (CGHS). was included. According to a report by Business Standard, and the encashment of leaves.

On the condition of the brand and logo of Air India, the central government said that the winning bidder will have to retain it for five years.

“The next step would be to issue a Letter of Intent (LOI) and then sign the share purchase agreement, following which the foregoing conditions will be met by the successful bidder, the company and the government. The transaction is expected to be completed by December 2021,” the finance ministry said.

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