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Why Air India offers staff a 2nd time voluntary retirement option

Air India Resumes Non-Stop Delhi-Zurich Route After 25 Years
While it orders new aircraft, Air India is currently undertaking extensive strategic plans for the future. In addition, it wants to hire new personnel and young 
talent for its fleet operations.  As it announced VRS for the older staff members for the second time and promised them better compensation. The goal of Air India is to replace the outdated work environment, aircraft, and of course its old staff with younger talent.

Why does Air India issue VRS to those over 40?

In an effort to cut costs and boost operational effectiveness, Air India has made voluntary retirement programs (VRS) available to its workers. By granting employees the option to retire voluntarily, Air India is enabling the airline to cut its personnel and associated costs without having to resort to layoffs or other more extreme measures.

The current offer, according to a notification, is only available to permanent general cadre officers who are 40 years of age or older and have at least five years of continuous service under their belts. Furthermore eligible are workers in the administrative and unskilled categories who have worked continuously for at least five years.

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Employees who choose to retire early or voluntarily are frequently given financial incentives to do so through VRS schemes, which can include severance payments, expanded medical coverage, and pension plans. By providing these incentives, Air India can persuade workers to retire of their own will, lowering the company’s payroll costs and strengthening its financial position.

“If staff opt for voluntary retirement between March 17 and April 30, 2023, they will also be given an ex-gratia payment as a one-time bonus. According to the notification, eligible personnel who submit their applications by March 31, 2023, will receive an additional Rs 1 lakh on top of the ex-gratia payment.”

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It’s worth noting that offering VRS is a common practice among many companies, especially those facing financial difficulties or restructuring efforts. It’s important to note that any VRS scheme must comply with labor laws and regulations, and affected employees should carefully evaluate the terms of the scheme before deciding to accept the offer.

Advancements in technology and training

Retaining young workers for the airlines requires an innovative, clever approach to problems, as well as initial training and ongoing support. \sThe older staff members can have trouble adopting new technology.
According to a statement published by the software business, the carrier would make use of Amadeus’ Alta PSS (Passenger Service System) suite, which includes elements for revenue management, revenue accounting, retailing, merchandising, website, mobile, and frequent flyer program management. most crucially, all significant new aircraft have the most up-to-date operations and maintenance procedures. Using the most recent technologies undoubtedly aids air India to preserve its positive reputation.

Older workers might be paid more and receive better benefits than more recent hires, and they might also have different skill sets and working habits that are no longer in line with the demands of the business. In order to save payroll costs and create room for younger, more affordable personnel with more modernized skills and expertise, the corporation may opt to retire some of its older employees.

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It’s crucial to remember that any decisions made regarding the retirement or termination of employees must adhere to labor rules and regulations, and those impacted may be entitled to severance payments or other benefits.

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He is an aviation journalist and the founder of Jetline Marvel. Dawal gained a comprehensive understanding of the commercial aviation industry.  He has worked in a range of roles for more than 9 years in the aviation and aerospace industry. He has written more than 1700 articles in the aerospace industry. When he was 19 years old, he received a national award for his general innovations and holds the patent. He completed two postgraduate degrees simultaneously, one in Aerospace and the other in Management. Additionally, he authored nearly six textbooks on aviation and aerospace tailored for students in various educational institutions. jetlinem4(at)gmail.com

Airlines

Qantas Expands IndiGo Codeshares from Singapore

Qantas Expands IndiGo Codeshares from Singapore

Qantas has broadened its codeshare partnership with IndiGo, India’s largest domestic airline, enhancing travel options between Australia and India. This expansion allows customers to seamlessly connect from Qantas flights in Singapore to IndiGo’s services to both Delhi and Mumbai.

Previously, the codeshare arrangement enabled passengers on Qantas flights arriving in Bengaluru and Delhi to connect onto IndiGo domestic services to 21 destinations across India. Now, travelers can enjoy a more streamlined journey by transferring through Singapore.

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Additionally, the new arrangement allows customers to incorporate overnight stopovers in Singapore into their travel plans before continuing to Delhi or Mumbai. This provides greater flexibility and convenience for those wishing to explore the city or rest before their onward journey.

Qantas passengers traveling on IndiGo flights benefit from the same checked baggage allowance as their flight from Australia and receive complimentary food and beverages. Furthermore, Qantas Frequent Flyers can earn and redeem points on connecting IndiGo flights (with a QF code) between Singapore and India.

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This partnership expansion comes alongside Qantas’s recent announcement of increased flights to both India and Singapore. Specifically, flights between Sydney and Bengaluru will become daily during the peak holiday season, complemented by additional flights from Sydney and Brisbane to Singapore.

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Virgin Atlantic Sued Over Alleged Age Discrimination: Cabin Crew Seek Justice

Virgin Atlantic Sued Over Alleged Age Discrimination: Cabin Crew Seek Justice

Virgin Atlantic finds itself embroiled in legal proceedings as over 200 former cabin crew members launch a lawsuit against the airline, alleging discriminatory practices during the period of the pandemic.

The dispute centers on accusations that the company unfairly targeted older employees for dismissal while retaining newer, less costly hires.

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The pandemic’s onset in March 2020 triggered a cascade of challenges for the aviation industry, leading Virgin Atlantic to ground a significant portion of its fleet. In response, the airline swiftly implemented cost-cutting measures, including the reduction of its workforce by over 40%, amounting to the loss of 3,000 jobs.

Additionally, it established a “holding pool” for potentially rehiring redundant staff once normal operations resumed. However, the crux of the legal battle lies in the claim that Virgin Atlantic retained approximately 350 new cabin crew members, some with minimal training periods as short as a week.

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While simultaneously letting go of experienced onboard managers, many of whom boasted an average age of 45 years and two decades of service. This perceived discrepancy forms the backbone of the lawsuit, with former employees contending that age became a determining factor in the airline’s decision-making process.

In response, a Virgin Atlantic representative stated: “Virgin Atlantic had to make very difficult decisions following the severe impact of the Covid-19 pandemic on the aviation industry.” Regretfully, this meant a 45% reduction in the total number of employees within the company.

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End of an Era: Qantas Retires Final Boeing 767 Freighter

End of an Era: Qantas Retires Final Boeing 767 Freighter

Qantas has officially bid farewell to its last Boeing 767 aircraft, marking the end of an era that began nearly four decades ago.

The final 767, a dedicated freighter variant registered as VH-EFR, operated its last flight on May 17, 2024. This concluding journey took it from Hong Kong (HKG) to Sydney (SYD) under the flight number QF7526, closing the chapter on Qantas’s use of the 767 after 39 years.

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The Australian airline commemorated the occasion with an Instagram post on Friday, announcing the retirement of VH-EFR, their last remaining 767. According to Cirium Ascend Fleet Analyzer data, this aircraft is a little over 18 years old. It joined the Qantas fleet in 2011, having previously served Japan’s All Nippon Airways (ANA) as a cargo plane.

Despite being owned by Qantas, the aircraft was operated by Express Freighters Australia under the Qantas Freight brand.

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The Boeing 767 has had a versatile history with Qantas. Initially, the aircraft was used on international routes, flying to destinations in New Zealand, Asia, and North America. Following the 1992 merger with Australian Airlines, the 767s were increasingly deployed for domestic services as well.

Although Qantas is retiring this specific freighter, the Boeing 767-300 freighter model remains active globally. Records indicate that 280 of these aircraft are still operational, serving 14 airlines around the world.

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